Egypt’s benchmark index dipped 4.62 percent by midday to record 8,816 points, with daily stock turnover reaching LE386 million.

“Funds made losses as the drop in oil prices pulled down regional and global markets,” Mohamed Radwan, head of equities at Cairo-based Pharos Holding, told Ahram Online.

Although Egypt is benefiting from falling oil prices, institutions investing in the MENA region needed to compensate for losses made in Gulf markets, Radwan added.

Institutions in Egypt’s market, which made more than 30 percent of all trades, were net sellers to the tune of LE32.1 million, and non-Arab foreigners were net sellers to the tune of LE24.2 million.

A decision to not cut oil production by OPEC in November, despite oversupply and falling demand, drove losses in global markets.

The MSCI world equity index was down 1.41 percent at 11.45 am, Saudi Arabia’s index fell 2.03 percent and the Dubai index dropped 7.61 percent. Brent fell to 61.58 per barrel on Friday.

Almost all stocks dipped in Egypt’s main index, EGX30, with the highest caps, Commercial International Bank and Telecom Egypt, falling 3.97 percent to LE47.35 per share and 1.86 percent to LE12.55 per share respectively.

Egypt’s leading investment bank, EFG-Hermes, saw its share price lose 7.77 percent of its value to LE16.5 per share at 12.20 pm.