LOCAL shares were oblivious to the bloodbath on international equity markets yesterday as they edged 0.8 per cent lower in a mixed performance where cement stocks ended at limit-up, buoyed by reports the government had approved increases in the retail price of cement.
The Cyprus Stock Market shed 4.7 points, ending at 537.34 as it rebounded from a more pronounced decline in the region of 2.5 per cent when it opened.
Traders said that reports of a rout on global markets had unnerved some investors at the outset, but the shortfall was narrowed when bargain hunters moved in to the market.
"Our market is not really affected by what happens overseas. Companies on the market do not have exposure there," a broker said.
An impact, if any, would be indirect because of the plans of such large companies as Bank of Cyprus to seek a dual listing of its stock on the Athens Stock Exchange. That market was down more than 9 per cent yesterday, following in the steps of a weak
performance in many European bourses and Asian ones.
"It might eventually be positive for a delay in the listing of the stock," said the trader, referring to previous expectations’ of investors that the bank would list by April.
The banking sector moved 1.03 per cent lower yesterday. Bank of Cyprus were down five cents to £8.62, Laiki were off 23 cents to £12.82 and Hellenic Bank closed at £3.15, 10 cents lower than on Friday.
Industrial stocks outperformed the broader market with a six per cent climb, centred entirely on significant advances for Cyprus Cement, Vassiliko and Keo.
Vassiliko climbed 34 cents to £2.62 and Cyprus Cement 10 cents to 76 on reports that the Commerce Ministry had approved increases in the retail price of cement.
One trader said that an increase could bring in extra annual profits of two million pounds for Vassiliko, the larger of the two cement factories.
In the case of Keo, insiders said there were some rumours on the market that the firm was "close" to an acquisition locally, but could not be more specific.
"The rumours have been pretty strong for the past two trading sessions," said one insider.
In terms of volumes, Aiantas Investment topped ranks with 1.9 million shares changing hands, rising 1.1 cents to 45. It was followed by Droushia Heights on a turnover of 1.4 million, retreating four cents to £1.08.
Severis and Athienitis denied market rumours yesterday that it was in talks to take over Aiantas. It however confirmed that it was in discussion with a number of unnamed companies exploring the possibility of participating in their share capital.
