[2007-11-08]  Egypt indexes steady as investors prepare for IPO
Egyptian stocks trimmed inter-session gains to end nearly flat on Wednesday, with local investors selling shares to prepare for an initial public offering by real estate developer Talaat Mustafa Group.

The benchmark Case 30 index climbed as high as 0.9 percent during the session but crawled back later to last trade almost unchanged at 9,301.96 points.

The Hermes index was steady at 82,535.99 points, while the CIBC index fell 0.1 percent to 400.94 points.

Talaat Mustaf Group said this week it would sell 330 million shares in a private placement starting November 8 at between 10.6 Egyptian pounds and 12.6 pounds a share.

Up to 65 million shares would be sold in an IPO at a 5 percent discount to the private placement, the group said.

"Some people were selling because they are preparing for this IPO," said Bassim Arida of CIBC brokerage.

But traders also said the market could be going through a gradual correction after indexes hit all-time highs recently.

"The market is already high and any market would go in a correction to rise again," said one broker. "The current price levels allow for some profit-taking."

Shares in investment bank Naeem Holding rose 5 percent to $2.68 after its decision to acquire between 75 and 80 percent of investment bank Naeem Saudi Arabia.

Naeem Holding would also list global depositary receipts on the London stock exchange, with the shares available over the counter.

Ezz Steel Rebars last traded at 60.34 pounds a share but closed at a year-high of 62.48 pounds. Traders have said investors anticipated it would win one of four licences to build steel plants Egypt has said it would sell.

Among the leading losers of the day was Telecom Egypt

which shed 3.4 percent to last trade at 20.30. Traders said rumours about possible expansion by the company had driven the stock higher.

"There are a lot of short-term traders in the market," said Arida. "If the stock does not pick up immediately they get out, so when the rumours did not materialise, the sold the stock."


Source: © Reuters 2007.