Egypt stocks fall further as oil prices and Chinese equities continue slide

Ahram Online , Thursday 20 Aug 2015


Egypt's main index EGX30 fell by 0.94 percent on Thursday to 7,172 points, its lowest level since January 2014, as the decline of oil prices and Chinese equities fuelled a sell-off of blue chips.

US crude oil prices fell by over 4 percent on Wednesday to hit a six-and-a-half-year low, while Brent Crude dropped 3.4 percent and slid further on Thursday, according to Reuters.

Fears over slowing growth in China also impacted on commodities.

Global stocks were down, as Asian shares hit a two-year low, and German and British stocks also reached record lows.

Non-Arab foreign investors were the largest net sellers for LE67.9 million ($8.7 million), followed by Arab investors for LE6.5 million ($751 thousand).

Egypt's largest private lender Commercial International Bank (CIB), a favourite of foreign investors, saw its share price fall 1.41 percent to trade at LE47.68.

A US rate hike in September could cause a steep devaluation of the Egyptian pound against the dollar. This 'may deter foreign investors from building aggressive long term positions in Egyptian equities in general and CIB specifically,' Cairo-based Pharos Holding said in a note.

CIB accounts for 22 percent of the EGX30 market cap.

Ezz Steel fell by 1.55 percent to LE8.28 after it announced a first-quarter loss of LE136 million ($17.4 million), compared to a loss of LE19 million ($2.4 million) in the same period in the previous year.

The company attributed a reduction in its output to foreign currency shortages in the country which rendered it unable to procure the required raw materials.

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