An interior view of the Egyptian stock market is seen in Cairo (Photo: Reuters)
Egypt's market tumbled on Sunday as foreigners and Arab investors exited the market following global and regional losses, analysts said.
Benchmark index, EGX30, dipped 5.23 percent to record 8,715 points, the lowest value in a month and a half. Daily stock turnover reached almost LE730 million.
The new prices for the gulf stocks mean that Egypt's stock prices are not necessarily lower than the gulf, so foreign and Arab investors are revaluating their investment priorities, an analyst told Ahram Online.
“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, said.
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 LE24 million, non-Arab foreigners were net sellers to the tune of LE25 million and Arab investors were net sellers to the tune of LE19.4 million. Egyptian investors were net buyers to the tune of LE44.4 million.
An OPEC decision not to cut oil production in November, despite oversupply and falling demand, drove losses in global markets.
The MSCI world equity index was down 1.41 percent, Saudi Arabia’s index fell 3.27 percent and the Dubai index dropped 7.61 percent. Brent fell to 61.58 per barrel on Friday.
Egypt's leading investment banks took the second biggest hit, falling 8.28 percent to LE16.23 per share. Ezz Steel dropped 9.2 percent to close at LE14.19.
Market bellwether, Commercial International Bank (CIB) was down 4.15 percent to LE46.9 per share.
Landline monopoly Telecom Egypt decreased by 3.72 percent to LE12.5 per share and Global Telecoms Holding fell 7.39 percent to LE3.67 per share.
Real estate leading stock, Talaat Moustafa Group dropped 4.36 percent to LE9.69 per share and Palm Hills for development dipped 6.95 percent to LE3.76 per share.
Broader index EGX70 fell 5.26 percent.