Egyptian market drops on global losses
Ahram Online, , Tuesday 6 Jan 2015

Egypt's stock market declined on Tuesday amid modest turnovers as uncertainty in the Eurozone and oil prices pulled down global markets, an analyst told Ahram Online.

The benchmark EGX30 index dropped 2.35 percent to 8,798 points on Tuesday, while daily stock turnover recorded LE471.2 million.

Egypt's market slid "mainly because of the global sell off that took place led by the US yesterday and had triggered a sell of in Asian markets and the drop in oil prices which has also created heavy losses in regional markets," Mohamed Radwan, head of equities at Pharos Holding, told Ahram Online.

Dubai's market had fallen 3.24 percent, Saudi Arabia's 0.71 percent, and Kuwait's 5.6 percent by 14:45 Cairo local time.

However, the weak turnover driven by global uncertainity mitigated the losses, according to Radwan.

"There is a lot of vagueness that has happend globally. That is why a lot of investors are on the sidelines waiting for a clearer picture on a global level whether in terms of direction of oil prices or the crack in the euro, especially the Greek case," he added.

Brent crude reached a fresh 5.5-year low at $52.28 a barrel on Tuesday on oversupply concerns. MSCI's emerging market index was down 1.07 percent.

Non-Arab investors were net buyers in the Egyptian market to the tune of LE8.5 million while Arab investors were net sellers to the tune of LE15.2 million.

Market bellwether Commercial International Bank (CIB) fell 2.27 percent to LE48.65 per share.

South Valley Cement was the biggest decline, falling 4.4 percent to LE6.9 per share. Real estate developer Palm Hills Developer followed with a 4.37 percent loss to LE3.92 per share.

Egypt's leading investment bank, EFG-Hermes, slid 3.97 percent to LE15 per share.

The broader EGX70 index fell 1.73 percent.