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Egypt stocks tumble on Thursday as oil prices fall again

Ahram Online , Thursday 11 Feb 2016
Egyptian stock market (Reuters)
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Views: 1130

Egypt's stocks plunged on Thursday to end down the trading week as global markets were hit by the re-emergence of growth worries, risks on oil prices and China's slowing growth.

Benchmark index EGX30 dipped 4.11 percent to 5,813 points in a session that witnessed a modest daily turnover of EGP 402 million.

"Stock decline was triggered by institutional sellers on redemption and global outlook because global markets are down," Mohamed Radwan, head of equities at Cairo-based Pharos Holding, told Ahram Online.

European stocks fell .FTEU3 over 3 percent to a 2-1/2-year low and brent crude futures LCOc1 were down 51 cents at $30.33 per barrel at 6:57am ET, Reuters reported.

Egypt's leading listed bank and the market's blue chip, the Commercial International Bank (CIB), plunged 5 percent despite achieving a leap of 26 percent in its net profits to LE4.73 billion in 2015.

"CIB declined because the bottom line came below market and especially Pharos’ estimates of LE5 billion," Radwan said.

However, Osama Mourad, chairman of Acumen Securities, believes that the good financial performance of the listed private bank was not enough to survive the market's drop.

The retreat in the main index came partially to mirror concerns on the devaluation of the local currency against the US dollar, said Mourad.

The state's Al-Ahram news website reported on Thursday, citing anonymous traders, that the Egyptian pound is changing hands at 8.8 to the US currency on the black market, which widens the gap from the official rate to one pound.

In the real estate sector, lead developers Talaat Moustafa Group (TMG) and Palm Hills Development fell 4.98 percent to LE4.47 and 5.31 percent to LE2.12 respectively.

Global Telecom Holding dropped 5.95 percent to LE1.69 and Orascom Telecom for Media and Technology declined 5.26 percent to LE0.54.

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