Egypt stocks sink to 15 month-low as institutional sell-off continues

Reuters & Ahram Online , Wednesday 8 Jul 2015

Egyptian stock market
Egyptian stock market (Reuters)

The bear run on Egypt's stock market continued early on Wednesday as property developer Emaar Misr slid further in the wake of its listing.

The benchmark index sank by a further 2.6 percent on Wednesday to a fifteen month low of 7,551 points, as foreign and local institutions continued to sell.

Non-Arab foreign institutions were net-sellers of LE22.4 million worth of shares which Egyptian institutions sold for LE12.8 million.

Market bellwether Commercial International Bank (CIB) fell 3.97 percent to LE44.05. The private lender accounts for 27 percent of the market cap in the EGX30 and is a favourite among foreign investors.

The market has been hit by economic worries, such as energy and foreign exchange shortages, and security fears after clashes with militants in the Sinai and the assassination of a senior official in Cairo. The Greek crisis has also hurt since the euro zone is a top trading partner and source of tourists for Egypt.

Emaar Misr, which listed on Sunday after an initial public offer at 3.80 Egyptian pounds per share, slid a further 3.46 percent to LE3.35. Before the IPO, analysts had put fair value at around 4.70 pounds, suggesting there was now panic selling of the stock.

Palm Hills Development, another big real estate firm, dropped 2.78 percent to LE2.45.

Arab Cotton Ginning, which dropped 2.5 percent on Monday after the government said it was halting all cotton imports in a bid to assist production and marketing of the local crop, fell a further 0.72 percent to LE2.75.

The chairman of the Egyptian Chamber of Textile Industries said the textiles sector would be hurt by the lack of cheap cotton imports.

Wednesday's session brought year to date losses for the EGX30 to 15.4 percent.

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