An interior view of the Egyptian stock market is seen in Cairo (Photo: Reuters)
Egypt's stocks plunged on Thursday on foreign selling after the central bank devalued the pound, signaling further possible devaluation, analysts say.
Benchmark index, EGX30, fell 0.97 percent to record 7,594 points amid average turnover of LE453 million.
The central bank's (CBE) move to devalue the pound is seen as a signal for further gradual devaluation which would lead to losses for foreign investors who are mainly institutions, Mohamed Radwan, head of equities at Cairo-based Pharos Holding told Ahram Online.
Egypt's central bank weakened the pound on Thursday to 7.83 to the dollar compared to 7.73 to the dollar at interbank trading. The CBE allows banks to trade the pound at 10 piasters above or below the set rate.
Institutions were net sellers to the tune of LE8.9 million.
Non-Arab foreign investors were net sellers to the tune of LE1.1 million while Arab investors were net buyers to the tune of LE775,000.
The stocks also fell on the back of profit making following a week of gains, said Radwan.
Market bellwether, Commercial International Bank (CIB), dropped 1.05 percent to LE53.6 per share to record the highest turnover of the session at LE78.4 million.
Real estate developer, Amer Group Holding, followed CIB with turnover at LE76.5 million, also declined 1.12 percent to LE0.85 per share.
But, Palm Hills for Development (PHD), gained 0.47 percent to LE2.11 per share.
Broader index, EGX70, also fell 0.89 percent.