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Egypt's stocks plunge as global growth fears affect regional markets

EGX30 takes 4 percent tumble with Arab and foreign selling as Gulf markets fall by as much as 6.5 percent on Sunday

Ahram Online, Sunday 12 Oct 2014
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Trader at the Egyptian stock exchange in Cairo. (Photo: Reuters)
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Egypt's stocks took a sharp fall to reach its lowest level in two months on Sunday as foreign selling tied to global fears dragged down local blue chips.

The EGX30 tumbled by some 4 percent to 9,164 points, as foreign investors were net-sellers for a combined LE12.7 million in a session which saw a total turnover of LE697 million.

Global shares have been hit in the past week as weak growth data from Europe and China have compounded investor fears regarding the US Federal Reserve's plan to wind down monetary stimulus.

Germany's DAX hit a one-year low on Friday as European shares suffered and Japan's Nikkei fell to a two month low, while the S&P 500 saw its worst week since mid-2012.

Market bellwether Commercial International Bank (CIB) fell 2.92 percent to LE46.8 percent, while Cairo-based investment bank EFG-Hermes, which topped the index in terms of turnover value, plunged 7.44 percent to close at LE16.43.

Property share Palm Hills Development Company, the third highest in turnover on Sunday, dropped 2.92 percent to LE46.81. TMG Holding was down 4.55 percent to LE10.50, and Six of October Development and Investment Company (SODIC) slid 5 percent to LE16.49.

In the telecom sector, majority state-owned fixed line operator Telecom Egypt fell 3.08 percent to LE12.92, while Global Telecom Holding tumbled 4.05 percent to close at LE4.74.

Egypt's largest steel producer Ezz Steel saw its share price take a 5.72 percent plunge to LE16.08.

Signs of the global economic slow-down prompted the International Monetary Fund to cut its 2014 global growth forecast to 3.3 percent from 3.4 percent, the third such move this year.

Markets in the Gulf were equally hit on Sunday, especially as world oil prices hit a four-year low over the weekend while the markets were closed.

Dubai's financial market tumbled by 6.5 percent on Sunday, while the Abu Dhabi Securities Exchange was down 3.5 percent, Kuwait's Stock Exchange fell 1 percent and Qatari stocks dropped by 3 percent.

Egypt's broader EGX70 index fell 3.72 percent.

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