Egypt stocks hit three-month low as OCI shares plummet

Ahram Online, Thursday 14 Mar 2013

Foreign investors engage in heavy selling of Egyptian stocks on Thursday as OCI tax dispute remains unresolved

Egypt stocks
An Egyptian trader talks as she monitor her screen at the stock market, in Cairo, Egypt(Photo: AP)

Egypt's benchmark EGX30 index ended the week down, taking a 2.08 percent tumble on Thursday to 5,207 points, its lowest in three months.

Foreign investors exited the market due to the ongoing dispute between the tax authority and market heavyweight Orascom Construction Industries (OCI).

OCI shares led the fallers, losing 4.42 percent as no news of a settlement was released following talks on Wednesday between the company and Egypt's tax authority.

"OCI shares experienced their most dramatic drop ever over the last couple of sessions, excluding the time of the revolution," said Mohamed Metwally, equity trader at Cairo-based Prime Securities.

Foreign investors exited the market in droves, unloading a massive net LE60.4 million worth of shares during Thursday's session, which saw total turnover of LE355.5 million.

The exodus was reflected in the fall of the EGX30's most prominent shares, Metwally said, as Commercial International Bank fell 2.09 percent, Orascom Telecom Holding fell 2.08 percent and Orascom Telecom Media and Technology Holding  fell 1.3 percent.

Prominent real estate stocks all dropped, with TMG Holding losing 2.72 percent, Palm Hills Development Company losing 0.47 percent and Six of October Development and Investment (SODIC) losing 1.08 percent.

The broader based EGX70 index fell 0.11 percent.

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