Cairo, Egypt - Egyptian stocks advanced again on Monday, the second day of the new trading week, driven by the news of rising GDP numbers, PANA reported from the Egyptian capital, Cairo. For the first time in years, Egypt's GDP saw negative growth of 4.2 per cent in the first quarter of 2011, but the released figures were far better than an expected negative showing of 7 percent. Tourism revenues and exports were hardest hit during the period of unrest, arising from the 25 January revolution. This left average GDP growth at 2.3 per cent for the entire July 2010- March 2011 period, with expectations of a slight improvement for the fiscal year once the April-June period is in. The main EGX30 index of heavyweight stocks advanced strongly despite selling by foreigners and institutions.

Purchases of Egyptian retail investors, who represent more than three quarters of the market, led theEGX 30 to gains of 0.71%.

Egyptian stocks have been performing well since the confirmation that an earlier Cabinet proposed tax on capital gains has been officially abandoned and will not be applied anytime soon.

Coming off a positive week, after a prior sharp drop on capital gains taxes rumours, EGX30 now stands at exactly 5,550 points.

EGX30 is now only some 100 points below the figure as at 27 January when trading was halted at the height of protests that overthrew former President Hosni Mubarak and his regime.

The main index is also still some 22% down for 2011.

In the meantime, the EGX70 of small and medium shares, the preferred target of Egyptian retail investors, was almost flat on Monday.

EGX70 stands currently at 654 points and only 9% down for the year now.

The small and medium share index has outperformed the main index, the favorite of institutions and foreigners, since the resumption of trade in the Egyptian Bourse on 23 March after a 55-day halt.

Finally, the price weighted index, the EGX100, which is down nearly 13% for the year, gained 0.29% percent on Monday.

Reflecting a sense of indecisiveness, EGX100 had been steadily going back and forth under and over the psychologically important barrier of 1,000 points.

On Monday, the index closed at 1014 after adding three points.

Total dealings on Monday reached US$ 96 million.

Some 91 shares rose, 78 fell, and 13 finished unchanged.

Pana 14/06/2011