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Egypt indexes decline after slew of big cap results

Published 03/16/2009, 09:49 AM
Updated 03/16/2009, 09:56 AM

CAIRO, March 16 (Reuters) - Egypt's benchmark index declined more than one percent on Monday, as the market digested full year results from two of Egypt's biggest firms and awaited the results of a third heavyweight company.

Orascom Construction, the single biggest weight on the benchmark EGX 30 index, dipped 3.38 percent to 133.10 Egyptian pounds ($23.61) by the close despite posting a net profit of $719.8 million, an increase of 230 percent on the previous year.

Traders said the stock fell after heavy buying in recent days.

"There were not really any big surprises (in the results) ... it is normal that traders take some profit," said Karim Hosny from Pharos Securities.

Wafik Dawood from Naeem Brokerage said in recent years both OCI and Orascom Telecom (OT) have pulled back on the day they release their results after rising in the preceding days.

"That is the psychology of the emerging market," he said.

OT is set to release its full year results after the close of trade.

Orascom Construction was the third best performing stock in Africa last week, excluding South Africa, according to Nex Rubica data.

Telecom Egypt, the Arab country's fixed-line monopoly and fourth biggest weight on the index, shed 2.96 percent to 14.40 pounds after its fourth-quarter net profit fell 28 percent as the company was hit by the economic slowdown. Its full year profit was 10 percent higher at 2.79 billion pounds.

Dawood said the fourth quarter figures would be closely analysed as the first quarter affected by the global turmoil.

"The impact of the financial crisis is just starting to appear on the financials of companies, starting from Q4 2008," he said.

"It is going to be the benchmark for the coming quarters."

Shares in real estate developer Palm Hills jumped 19.33 percent to 8.15 pounds after it said its full year net profit trebled to 658 million pounds as it diversified its customer base.

The EGX 30 ended at 3,780.84 points, while the rival Hermes index clipped off 0.81 percent to 358.28 points. The broader EGC 70 shed 1.21 percent to 463.46 points. ($1 = 5.6374 Egyptian pounds) (Writing by Alastair Sharp)

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