Egypt Market Slips on OCI Share Re-pricing

Egypt's benchmark EGX30 index edged down 0.3 percent after Dutch-listed OCI N.V reduced its tender offer to shareholders of Orascom Construction’s (OCI) Egyptian listed shares, disappointing investors who expected an increase in the offer.

OCI, the market's biggest listed company, said in a statement that its parent company will proceed with the tender offer to acquire 100 percent of its Egyptian listed shares but reduced the price offered from LE280 to LE255.

"The OCI N.V decision is the main reason for the market's fall today; the difference between the prices is a big one," said Hisham Metwalli, a trader at Arab Finance Brokerage. "Investors were expecting the price to be raised above LE300." The market closed at 5,400 points with turnover LE317 million.

Among blue chips, Palm Hills (PHDC) was the index’s most traded stock, gaining 3.2 percent. Ezz Steel gained 1.77 percent and real estate developer SODIC 1.3 percent. OCI fell 1.64 percent, Commercial International Bank (CIB) 0.5 percent and landline monopoly Telecom Egypt (ETEL) 0.3 percent. The broader EGX70 index remained almost flat.