Egypt stocks plunge over 5% as oil price slide riles global equities

Ahram Online , Wednesday 20 Jan 2016

File Photo: A general view of the Egyptian stock exchange in Cairo August 18, 2013. Egypt's stock market fell (Reuters)

Egyptian stocks resumed their slide on Wednesday, wiping out gains from a brief rally earlier in the week as oil prices and global equity markets hit new lows.

Egypt's benchmark EGX30 index plunged 5.26 percent to end the session at 5,776 points.

Market bellwether Commercial International Bank (CIB), a favourite among foreign investors, saw its share price dive 7.12 percent to LE30.67, while second largest listed firm and property developer TMG Holding tumbled 6.68 percent to LE5.31.

Palm Hills Development Company plunged 7.01 percent to LE1.99 a share.

Majority state-owned landline operator Telecom Egypt fell 4 percent to LE5.76 a share, while Global Telecom Holding slid 5.2 percent to LE1.64 a share. Orascom Telecom Media and Technology Holding (OTMT) fell 6.90 percent to LE0.54 a share.

Blue chip Orascom Construction Limited was down 5.64 percent to LE52.88.

Non-Arab foreign investors were the main net-sellers to the tune of LE42.5 million. Egyptian institutions were also net-sellers for LE26.2 million.

Global stocks took a beating on Wednesday as a fresh slide in oil prices sparked a race away from equities and towards safe-havens after the International Energy Agency warned that the oil market would "drown in oversupply" this year.

"The MSCI World equity index fell 1.3 percent to its lowest level since July 2013, and the index's fall so far in January is already 9.9 percent, the biggest drop since 2009," Reuters reported.

US crude prices fell below $28 a barrel, a 13-year low. US futures shed 2.9 percent to $27.63, while brent crude lost 2.1 percent, having slipped below $28 earlier in the session, according to Reuters.

Short link: