Egypt's bourse fell 0.9 percent on Sunday as investors started taking profits after a long rally, while other markets in the region moved little in the absence of fresh catalysts. "Since Thursday, the market is witnessing a small bout of profit-taking," Chamel Fahmy of Cairo-based HC Securities and Investment said of Egypt's pull-back. "It was expected."
The index is up 42 percent from its late June low and has been gaining steadily since early September as investors were encouraged by relative political stability following the ouster of former president Mohamed Morsi in July. But the rally may be over now and the market is likely to trade sideways for a while, Fahmy said.
"At lower levels for the index, we might again see appetite back in some stocks," he said. The index, which closed at 6,356 points, has immediate technical support around 6,200 points, which was a ceiling in late October.
Elsewhere in the region, Bahrain's index slipped 0.2 percent, dragged down by a pull-back of Aluminium Bahrain's share price. The stock fell 1.9 percent on profit-taking after jumping 4.9 percent last Thursday following an earnings report that showed it had returned to profit in the third quarter.
United Arab Emirates bourses were mixed. Dubai's benchmark gained 0.2 percent with the biggest index movers being construction firm Drake and Scull and property developer Emaar.
"The next big catalyst on the horizon is the Expo (2020) decision on Dubai's bid," said Amer Khan, fund manager at Shuaa Asset Management. The decision on whether Dubai can host the world's fair is expected on November 27, and some investors believe a victory for Dubai would bring more business for developers and construction companies.
Abu Dhabi was down 0.1 percent. Heavyweight Etisalat fell 0.4 percent; Reuters reported that international banks Standard Chartered Plc and Citigroup had fallen out with the telecommunications firm over $400 million which they lent to its now defunct Indian affiliate.
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