x Abu Dhabi, UAESaturday 22 July 2017

Egyptian profits firmly locked

Egyptian stock tumbled as this year's strong rally encouraged investors to book profits.

Shares of Palm Hills, the developer of the luxury project in Cairo lost 4.4 per cent in trading yesterday. Asmaa Waguih / Reuters
Shares of Palm Hills, the developer of the luxury project in Cairo lost 4.4 per cent in trading yesterday. Asmaa Waguih / Reuters

Egyptian stock fell yesterday as investors booked profits after a strong rally this year.

Talaat Moustafa Group, the country's biggest publicly traded developer, dropped 3 per cent to 5.50 Egyptian pounds. Palm Hills Developments, another luxury developer, fell 4.4 per cent to 2.99 pounds a share.

The EGX 30 Index closed 1.3 per cent lower to 5,889.91. The benchmark is up 62.6 per cent so far this year.

"The market is currently too stretched," said Wafik Dawood, the head of institutional sales at Mega Investments Securities in Cairo.

"We could be heading sideways in the coming few weeks, especially since most investors in the market have made decent money over the past sessions.

"The decision to trim positions is much easier, a chance to lock some profits."

In the UAE, the Dubai Financial Market General Index rose 0.4 per cent to 1,569.50, while the Abu Dhabi Securities Exchange General Index gained 0.2 per cent to 2602.97.

Property and construction-related stock led the advances in both emirates. Aldar Properties, the capital's biggest developer, rose 0.8 per cent to Dh1.27.

In Dubai, Arabtec Holding, a major construction company, gained 1.2 per cent to Dh2.44.

Elsewhere in the region: Kuwait's measure gained 0.7 per cent to 5,990.54; Bahrain's index added 0.3 per cent to 1,083.37; Oman's MSM 30 Index slipped 0.3 per cent to 5,529.21; Qatar's QE Index slipped 0.1 per cent to 8,493.70.

The Saudi Tadawul All-Share Index was closed for the weekend.

 

halsayegh@thenational.ae