Egypt’s stock market slides despite IMF news

Egypt’s stock market dropped on Thursday for the second day in a row, despite the prime minister\'s declarations about an IMF visit to the country this month. Egyptian Prime Minister Hisham Qandil said on Thursday he expected an International Monetary Fund team to visit for talks on a $4.8 billion loan agreement. Qandil also said late on Wednesday that the government had now finished drawing up a revised reform programme, seen as vital to securing the loan. Investors did not respond positively as expected, perhaps a result of the history of missed deadlines with regard to the loan arrangements. The main EGX30 index declined 0.28 percent on Thursday to reach 5,715 points, as foreign and Arab investors ended the day’s trading as net-sellers recording net flows of LE10.4 million and LE1.1 million respectively. Egyptian investors were net-buyers at LE11.5 million during the session. Blue chip Orascom Construction Industries (OCI) lost 0.5 percent of its value during the day. Other heavy weights Orascom Telecom Holding (OT) and Commercial International Bank (Egypt) lost 0.9 and 0.37 percent respectively. Juhayna Food Industries gained 2.47 percent to reach LE8.72 after the company announced its profits had soared by 75 percent to LE325.4 million ($48 million). The company has previously announced it intends to invest LE1.2 billion this year. Out of 175 shares traded today, 82 lost in value while 63 gained. Total daily turnover reached LE278 million. The broader index EGX70 gained 0.37 percent. On Wednesday, the market was negatively affected by global rating agency Moody’s downgrade of the country’s government bonds. The EGX30 index declined 0.4 percent.