My days and thoughts....

Blog covering some selected happenings in my life.

Monday, June 12, 2006

How low does the stockmarket want to go?

The Egyptian stockmarket is continuing a somewhat sharp longterm correction movement. Today, Monday 12 June, the downward trend is getting sharper.
As of now 1.30 PM, the prices are as follows for main stocks

HRHO: Hermes Holding -6.8% @ 28.51
ETEL: Telecom Egypt -4.0% @ 12.94
ACGC: Arab Cotton Ginning -5.28 @ 8.08
ORTE: Orascom Telecom -2.74% @ 260.00
ESRS: Ezz Steel -5.16% @ 43.87

Mobinil are dropping at a lower pace. There is something wrong with the market. Yes, the stocks were over valued, but now I think they are being undervalued. What the heck is going on? Does the impact of amateur investors last so long?? They have been stinged by the effects long ago since last february. The untrustable government economic indicators show an assumable strong economic growth. This should reflect in a stronger market. The interest rates on the Egyptian pound are going down to 7%. This should give extra strenght to the market.

On another note, the NYSE is preparing for a similar correction movement. Let's see what will happen to the foes on the other side of the atlantic.

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