Egyptian stocks keep falling amid institutional sell-off

Ahram Online , Tuesday 12 Jan 2016

File Photo: Traders work at the Egyptian Stock Exchange in Cairo August 11, 2011 (Reuters)

Egyptian stocks extended losses on Tuesday as part of a global and regional downward trend impacted by slowing growth in China and falling oil prices.

The benchmark EGX30 index dipped by 2.58 percent to 6.463 points with daily stock turnover registering LE515.5 million.

"Egypt's market is part of a larger downward trend affected by the recent plunge in oil prices and instability in the Chinese market," Wafik Dawood, Portfolio manager at Compass Capital, told Ahram Online.

Oil began the day on a fresh 12-year low with Brent oil breaking below $30 before recovering to above $31 a barrel. The oil recovery and a surge in offshore Chinese yuan deposit rates lifted stocks in Europe earlier today.

Regional markets also closed in the red with Saudi main index falling 1.75 percent and Dubai market edging down 0.73 percent.

In the Egyptian market, where around 60 percent of the stocks were in decline, institutions contributed to selling pressure, according to Dawood.

Institutions, mostly Arab and foreign, were net sellers to the tune of LE144 million.

Blue chip Commercial International Bank (CIB) plunged 4.11 percent to LE34.2 per share.

Cairo-based leading investment bank EFG-Hermes dipped 1.78  percent to LE7.65 per share and Orascom Telecom for Media and Technology dropped 1.54 percent to close at LE0.62 per share.

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