The EGX30, Egypt's stock benchmark declined to 5,425.98, down from yesterday's 5,477 points, in what analysts described as a natural reaction to dissatisfying profit results released by many companies, and a swathe of corruption cases against officials from Mubarak's former regime.

Egypt's main stocks dipped 0.94 per cent on Thursday, concluding a second-straight week of slight losses since the reopening of Bourse on 23 March after six weeks closure following the start of the revolution.

"Many investors have been sticking to the sidelines ever since the market reopened, waiting for first quarter results," says Salah Heidar, analyst at City Trade Securities. "But when the results came in and were below the traders' expectations they lost interest in their shares and sold them."

Many companies have announced their 2011 first quarter revenues, reporting losses due to the political turmoil that started on 25 January and brought an end to Hosni Mubarak's 30-year reign.

Decisions to freeze assets and arrest officials and businessmen in the ousted president's inner circle have sent shockwaves through the stock market.

"What is really alarming is the privatisation cases of so many companies, many of which are owned by former officials and are now under investigation," explains Heidar. "If they were found illegal, it might lead to great losses and panic inside the Bourse."

Foreigners were responsible for 43.75 per cent of trade and, unusually, were net-sellers. Meanwhile, Egyptians were net-buyers making up half of the market value, with net spending of LE5.9 million.

Total trading value on Thursday reached LE474.2 billion.

Most sectors recorded a dive, with only industrial goods and services, automobiles and the healthcare and pharmaceuticals sectors finishing in the green.

The bourse's top gainers included Egyptian for Developing Building Materials, recording a 9.98 per cent increase from last session, and Belton Financial Holding which rose 4.98 per cent.

Sinai Cement was among today's top losers, recording a 9.27 per cent decline, and Suez Canal Bank fell 5.97 per cent. 

Yesterday, Finance Minister Samir Radwan said that Egypt's economy was expected to grow 2.5 per cent in 2011, around half the rate originally forecast.

Meanwhile, General Authority for Investment and Free Zone Chairman Osama Saleh said Wednesday that Egypt's foreign direct investment is expected to drop by over 40 per cent in the current fiscal year.

Although these figures are preliminary, analysts think they gave foreigners a glimpse of how bad the damage is.

"Foreigners were rushing to sell today because the figures released were clearly serious," says Heidar. "But the new disclosure policy adopted by the stock authority has made life much easier for investors, creating a healthy investment environment"

Prior to the reopening of the Bourse, the Egyptian Financial Supervising Authority announced it had given orders for listed companies to report any trades by ex-officials who are now under investigation.

It has also ordered companies to disclose their financial and operating positions for the period in which the stock market was suspended.

As a result when the Bourse resumed on 23 March, Chairman Mohamed Abel-Salam announced that two out of the 46 companies suspended from trading will be allowed to resume after they fulfill disclosure procedures.