[2008-04-23]  Orascom Telecom weighs on Egypt stock index
Egypt's main stock index fell for the first session in four on Tuesday as investors booked profits on shares of Orascom Telecom after a rally.
The index, up nearly 13 percent this year to Monday's close, retreated 0.7 percent to 11,825.55 points. It hit a record high of 12,039.19 points during the session before falling back.
"The 12,000 point mark is a psychological barrier," said Mohamed Radwan, trader at Pharos Securities in Cairo.
Orascom Telecom, which has rallied about 8 percent since it said last week it would buy back 10.3 percent of its own shares at 83 pounds per share ($15.40), shed 1.25 percent to 81.25 pounds.
"Orascom Telecom was the major news and the most active stock (after the buyback announcement)," Radwan said. "People are taking profit."
Shares of Telecom Egypt dropped 4 percent to 19.70 pounds.
Shares of investment bank EFG-Hermes gained for a fourth day, bucking the trend. Shares of the bank, which is coordinating two upcoming IPOs, rose 0.1 percent to 56.63 pounds.
Shares of Eastern Tobacco surged 10 percent to 419.95 pounds.
The jump may be due to institutional investors trying to boost their stake in the company and paying a premium because the stock is not heavily traded, Radwan said.
The Hermes index lost 0.4 percent to 102,577.1 points and the broader CIBC index gained 0.6 percent to 564.76 points.
Retail investors were selling shares ahead of a stock market holiday, said Hashem el-Ghoneim, chief executive of El Nour Securities. The market will be closed on Sunday, Monday, and Thursday next week, Egypt's state news agency has reported.
"Retail investors that trade on a daily basis will be taking a break," he said.
Source: © Guardian News and Media Limited 2008