Egypt’s index eased from a 69-month high yesterday as investors awaited next week’s presidential election before committing more cash to the market.
Property developer Talaat Mostafa and telecom operator Global Telecom Holding were among the main drags, falling 1.1% and 2.8% respectively.
The benchmark slid 0.3% to 8,532 points. On Thursday, it ended at 8,553 points, its highest close since August 2008.
“We need a catalyst to pass through 8,600 points. We might see a slight correction,” said Mohamed Radwan, head of equities at Pharos Securities in Cairo.
Egypt’s market will trade sideways until after the presidential election on May 26-27, Radwan said.
Elsewhere, Dubai’s index fell for a third session, dropping 0.9%, while Abu Dhabi slid 0.7%.
This pair are up 52 and 16% respectively this year, but a sustained rally has showed signs of faltering in recent weeks, with Dubai 4.4% below May 6’s six-year peak and Abu Dhabi 4.3% shy of April 23’s eight-year high.
Some valuations have become stretched, analysts said, but heavyweight stocks including Emaar Properties and Aldar Properties posted big jumps in first-quarter profit to bolster market sentiment.
“That usually means fund managers and analysts will review their forecasts for the rest of the year and, from that, attract more liquidity,” said Mohammed Yasin, managing director of NBAD Securities. “But with such a large move we have to be selective. You can’t keep buying across the board.”
Elsewhere in the Gulf, Saudi Arabia’s index edged up 0.02% to 9,810 points; Kuwait’s measure rose 0.02% to 7,405 points; Bahrain’s benchmark slipped 0.03% to 1,463 points, while Oman’s gauge rose 0.2% to 6,745 points.