CAIRO: The Cairo and Alexandria Stock Exchange (Case) trading committee decided Monday, Dec. 17 to add 50 stocks to the list of companies traded without price limits.
The decision took effect starting Sunday’s trading session, bringing the total number of companies trading without price limits to 152.
Sources told Al Masry Al Youm that the bourse’s decision came after carefully studying several memos submitted to the Case requesting that price limits be removed from stocks in order to invigorate trading of the listed companies and increase liquidity in the market.
The move is also meant to counter manipulation of stocks that are allowed to move up and down by 5 percent on a daily basis, a source told the paper. Sources explained that these stocks are sometimes used by some traders to make “unrealistic profits by deceiving individual investors. The stocks are collected over several consecutive days, leading prices upwards by the permissible 5 percent each day and then selling it to take in huge profits, bringing the price back down.
Mohamed Fouad, institutions desk director at Prime Securities, told Reuters that this decision helped restore some supply-demand balance.
“This is a very positive measure and will limit speculation operations on small caps, he added.
Ghabbour Auto, the only listed auto firm and one of the 50 companies, gained 3.34 percent to LE 54.50.
Egypt’s main indexes rose on Sunday in relatively low-volume trading after the Eid Al-Adha holiday, led by big caps amid strong Arab buying, brokers told Reuters.
The benchmark Case 30 index rose 1.2 percent to 10,380.13 points. The Hermes index was also 1.2 percent up to 91,079.47 points. The broader CIBC index gained 1.1 percent to 393.79 points.
The 50 companies now trading without price limits:
1. GB AUTO2. Remco for Touristic Villages Construction3. Asek Company for Mining – Ascom4. El Nasr Transformers (El Maco) 5. Rowad Tourism (Al Rowad)6. Tourism Urbanization7. Arab Investment Urbanization8. Rubex Plastics9. Northern Upper Egypt Development & Agricultural Production10. Zahraa Maadi Investment & Development11. El Nasr For Manufacturing Agricultural Crops12. Cairo Investment & Real Estate Development13. National Housing for Professional Syndicates14. Delta Insurance15. International Co. For Investment & Development16. Egyptian Chemical Industries (Kima)17. Cairo Oils & Soap18. Gharbia Islamic Housing Development19. National Glass & Crystal Co.20. Nasr Company for Civil Works21. Sharkia National Food22. Ismailia Misr Poultry23. Egyptian Real Estate Group24. Lecico Egypt25. Paper Middle East (Simo)26. El Wadi for Exporting Agricultural Products27. General Company For Land Reclamation, Development & Reconstruction28. Helwan Cement29. Mohandes Insurance30. International Agricultural Products31. National Investment & Reconstruction32. Natural Gas & Mining Project (Egypt Gas)33. Arab Aluminum34. Acrow Misr35. Cairo Pharmaceuticals36. Ameriyah Cement37. Misr Conditioning (Miraco)38. Misr Duty Free Shops39. Kafr El Zayat Pesticides40. Egyptian Real Estate41. Pharco Pharmaceuticals42. Egyptian Sponge43. TransOceans Tours44. Mansourah Poultry45. Alexandria Flour Mills46. Saudi Egyptian Investment & Finance47. Misr Hotels48. Alexandria Medical Services49. Arab Pharmaceuticals50. Ahli United Bank-Egypt
