Egypt’s stock market dropped on Wednesday following global rating agency Moody’s downgrade of the country’s government bonds a day earlier.

The main EGX30 index declined 0.4 per cent to reach 5,732 points, as foreign investors ended Wednesday’s trading as net-sellers of some LE38.6 million.

Foreign investors were discouraged by the downgrade from B2 to B3, which the agency attributed to the recent escalation of civil unrest in the country, highlighted by violent clashes between protesters and security forces in recent weeks resulting in many deaths.

Domestic investors were net-buyers at LE44.1 million during the session.

The broader EGX70 index also dipped by 1.1 per cent.

The heavyweight share Orascom Construction Industries (OCI) was suspended in the middle of trading, until the company sent a statement to the Egyptian bourse confirming that its shareholders have approved an offer to acquire OCI shares listed in Cairo in exchange for cash or OCI-NV shares listed in Amsterdam, as part of a move whereby OCI will be acquired by newly-founded company OCI-NV.

OCI rose by 1.6 per cent by the end of the session.

Commercial International Bank, another high-cap, slumped by 1.6 per cent, while Orascom Telecom slipped by 2 per cent.

Property shares also dipped on Wednesday, led by Talaat Moustafa Group which declined by 1.4 per cent, Palm Hills Development at 1.1 per cent, and Six of October Development at 0.3 per cent.

Total daily turnover reached LE376.5 million.