Egypt shares decline for fourth session

Reuters/Dubai

Egypt’s bourse declined for a fourth straight session yesterday, partly because of the risk of further street violence, while Gulf markets were mixed with some investors booking recent gains ahead of approaching holidays.

Cairo’s measure fell 0.6% as supporters of ousted president Mohamed Mursi prepared to march on a military facility in the city, in defiance of an army warning to stay away. Dozens of supporters were shot dead over the weekend.

However, selling pressure was minor as many investors see the violence as an acceptable part of the transition back to civilian rule. The main drag on the market was again Orascom Construction Industries, which fell 1.9%. Egypt’s largest stock by market value may soon delist after its Dutch-listed affiliate OCI NV bought more than 97% of OCI in a tender offer.

Foreign investors were net sellers of Egyptian stocks yesterday, bourse data showed.

In Saudi Arabia, the index gained 0.4%, halting a four-session loosing streak since it hit a 15-month peak.

Trading is expected to be sluggish in a lull after quarterly earnings announcements, and ahead of Eid holidays in early August which will mark the end of Ramadan, the holy month of fasting.

“Most likely, the Saudi index will remain at current levels until after Eid,” said Hesham Tuffaha, a Riyadh-based fund manager. “You can expect the market to remain seasonally dull in the last 10 days of Ramadan.”

In coming weeks, investors will be looking at key sectors that promise the most growth, such as retail, cement and construction, he added.

Markets in UAE were mixed. Abu Dhabi’s benchmark slipped 0.5%, trimming its 2013 gains to 47%. The index has recorded a negative 14-day momentum divergence over the past several days, a classic sign of the end of a short-term uptrend.

“A regional pull-back is underway after strong upward moves over the past month,” Al Masah Capital said in a note. “Abu Dhabi stocks started to descend from overbought levels and could continue as the index still remains in overbought territory.”

Dubai’s measure however gained 0.3%, essentially moving sideways since retreating from last week’s near-five-year high. The market is dominated by short-term retail investors, traders said.

After trading hours, Dubai’s largest property developer Emaar Properties, posted a 10% increase in second-quarter net profit, beating analysts’ forecasts by about 20%, on higher property sales in the emirate.

Shares in Emaar gained 0.2% yesterday and are up 53% year-to-date, slightly underperforming the index, which has risen 55% over the same time frame.

Kuwait’s benchmark fell 0.4%, easing off Sunday’s eight-week high; Oman’s bourse ended flat at 6,714 points, while Bahrain’s index gained 0.6% to 1,191 points.