Egypt's stocks tumble on investor worries over high-profile corruption case

Ahram Online , Tuesday 8 Sep 2015

EGX30, EGX70 fall as corruption charges against minister stir market fear

Egyptian stock market
An interior view of the Egyptian stock market is seen in Cairo (Photo: Reuters)

Egypt's bourse fell Tuesday as investors worry that an investigation into corruption charges against key government officials could negatively affect the country's investment environment.

Agriculture Minister Salah Helal was arrested Monday on corruption charges and has been detained pending investigation.

Leading anti-corruption activist and former MP Hamdi El-Fakharany was also arrested on Sunday and is being investigated on charges of bribery.

Egypt's benchmark EGX30 index fell by 3.38 percent to 6,924 points on Tuesday, while the broader-based EGX70 declined by 3.49 percent.

"There are speculations that the high-profile corruption case that was recently unveiled could include big names both within the private sector and the government, which will stir distrust in Egypt's market," Mohamed Radwan, the head of equities at Pharos Holding, told Ahram Online.

Out of 166 stocks traded, 124 suffered losses while only 18 registered gains. Blue-chip stocks Orascom Construction Limited and the Commercial International Bank (CIB) both tumbled by 4.68 percent and 3.02 percent respectively.

Arab investors, meanwhile, were net sellers, offloading almost LE24 million worth of shares.

The real estate sector suffered the most, with market giants Talaat Mostafa Group Holding and Emaar Misr for development both declining by 6.10 per cent and 1.48 per cent respectively.                                                    


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