[2007-11-13]  Egyptian stock indexes inch lower on IPO
Main Egyptian indexes edged down on Monday as investors continued to sell off holdings to participate in Talaat Mustafa Group's ongoing initial public offering (IPO), brokers said.
The Egyptian construction and real estate firm's IPO opened on Sunday and will continue until the close of business on Nov. 20, with up to 65 million shares expected to be sold.
"You have this Talaat Mustafa IPO; that's weighing a bit down on the market because there's some selling that's happening... to finance the IPO," said Yasser Hassanein of Dynamic Securities.
Shares in Telecom Egypt fell almost 4 percent to last trade at 19.32 pounds per share. Hassanein said foreign institutions, who had bought the stock at 16 pounds, were taking profit after it hit the 22-pound level.
Brokers said the housing sector was rising on the Talaat Mustafa Group IPO.
Shares in Heliopolis Housing rose 3.4 percent to 481.03 pounds, while Medinet Nasr Housing shares gained 1.5 percent to at 54.79 pounds.
Real estate company Sixth of October Investment and Development's (SODIC) shares were hit by profit-taking a day after rising 4.2 percent, said Teymour el-Derini at Beltone Financial.
The share last traded 1.2 percent down at 216.10 pounds.
Investment bank EFG-Hermes continued Sunday's rally on rumours that Abraaj Capital, which has a 25 percent stake in the bank, could either increase or sell its stake.
Yasser el Mallawany, EFG-Hermes chairman and chief executive, said he was in a meeting and could not speak when contacted on his mobile phone for the second day in a row.
EFG-Hermes shares last traded 1.7 percent up at 57.49 pound per share.
Overall, the benchmark Case 30 index lost 0.1 percent to 9,389.09 points. The Hermes index was 0.2 percent lower at 82,848.71 points, while the CIBC index fell 0.6 percent to 394.88 points.
Source: © Guardian News and Media Limited 2007