Egyptian stock exchange falls for 7th day in a row

Ahram Online, Tuesday 14 Oct 2014

Egyptian stocks fell by 2.6 percent, affected by global and regional markets

Egyptian Exchange
The Egyptian Exchange bell is seen at the stock exchange in Cairo (Photo: Reuters)

Egypt's main stock index dropped for the seventh consecutive market session, along with regional markets, amid fears of global economic slowdown.

The benchmark EGX30 index lost 2.6 percent on Tuesday to reach 8,878 points. Turnover was relatively high at LE899 million ($126.6 million).

"The market passed through a correction which is happening in several other markets, but I believe the market’s performance was getting better at the end of the session," said Ashraf Abdel-Aziz, head of institutional sales at the Cairo-based Arabia Online.

Abdel-Aziz expects the market to return to the black as soon as Wednesday. "It will depend on how American stocks end the day," he added.

Global and regional shares have been hit by fears of weak growth data from Europe and China this week.

On Tuesday, Dubai’s main index lost 2.9 percent, while Abu Dhabi’s exchange inched down 1.12 percent.

All EGX30 shares traded in the red with Commercial International Bank (CIB), the biggest market cap, losing 2.04 percent to reach LE46.03.

Other big caps Global Telecom Holding and Telecom Egypt lost 1.88 percent to reach LE4.71 and 2.06 percent to reach LE12.86 respectively.

The real estate sector posted heavy losses with its leading share TMG Holding down 4.6 percent to LE9.95. Palm Hills Development Company dropped by 3.72 percent to LE3.38 while Medinet Nasr Housing and Heliopolis Housing dropped 5.26 percent to LE40.02 and 5.23 percent to LE54.57 respectively.

In the financial services sector, Egyptian Financial Group-Hermes Holding Company and Pioneers Holding fell by 2.09 percent to LE15.94 to LE12.57 respectively.

Unlike Monday, foreigners were net buyers recording a net flow of LE65.3 million, while Egyptians and Arab were net sellers.

The benchmark EGX70 index lost 2.63 percent.

Out of 185 stocks traded during the day, 151 lost in value while only 19 gained.

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