Most Egypt Stocks Advance After Pro-Army Rallies; OCI Declines
Most Egyptian stocks rose after rallies in support of the military-led government overshadowed deadly clashes between police and opposition protesters. Orascom Construction Industries fell as a buyout offer expired.
Twenty-one stocks in the EGX 30 Index advanced, four declined and five were unchanged at the close in Cairo. Orascom Telecom Holding SAE rose the most in a week and private equity company Citadel Capital SAE jumped 5 percent. The EGX 30 Index lost 0.7 percent to 5,317.06 as Orascom Construction tumbled the most in more than four months. OCI NV (OCI)’s offer to swap for the company’s stock or receive a cash payment of 255 pounds a share expired today.
Egyptians turned out for mass demonstrations over the weekend in favor of the military, which ousted President Mohamed Mursi earlier this month. Mursi’s supporters, led by the Muslim Brotherhood, vowed to continue a monthlong sit-in in Cairo even after weekend clashes with police left 65 people dead and hundreds injured, according to the Health Ministry.
“The market has been resilient to clashes for some time now and it doesn’t expect political reconciliation,” Wafik Dawood, director of institutional sales at Cairo-based Mega Investments Securities, said by phone. The demonstrations “strengthen the view that the military’s intervention has public support.”
Supporters of Mursi and the army have clashed since the former president was deposed July 3. Orascom Telecom increased 0.7 percent, the most since July 21, to 4.45 pounds, while Citadel Capital gained to 3.37 pounds, the highest since May 22.
Orascom Construction, the biggest company on the index by weighting, tumbled 4.1 percent, the most since March 14, to 240.6 pounds. Holders of 44.9 million shares, out of 50.2 million shares of Orascom Construction sought by OCI, have submitted their shares to swap or sell, as of the market close in Cairo today, the Egyptian bourse said in e-mailed statement.
Elsewhere in the Middle East, Dubai’s benchmark stock index declined 0.5 percent to the lowest in more than a week as Arabtec Holding Co. (ARTC) retreated the most in more than a month. The biggest publicly traded construction company in the United Arab Emirates raised 2.4 billion dirhams ($653 million) by selling 1.56 billion new shares at 1.5 dirhams each in a rights issue. The stock lost 3.1 percent to 2.18 dirhams.
Abu Dhabi’s ADX General Index (ADSMI) dropped 0.6 percent, Qatar’s QE Index and Bahrain’s gauge fell 0.4 percent, while Kuwait’s benchmark rose 0.2 percent and Oman’s MSM30 Index advanced 0.1 percent. Saudi Arabia’s Tadawul All Share Index (SASEIDX) lost 0.1 percent.
In Israel, the TA-25 Index declined 0.1 percent at 3:31 p.m. in Tel Aviv, led by Teva Pharmaceutical Industries Ltd. (TEVA) The shares of the maker of generic drugs lost 2.1 percent, the most since June 13, after a U.S court invalidated a 2015 patent for the top-selling Copaxone medicine.
The yield on Israel’s 4.25 percent notes due March 2023 retreated two basis points, or 0.02 percentage point, to 3.71 percent.
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