Egypt stocks hit 7 week-low as Syria tensions mount

Ahram Online, Wednesday 28 Aug 2013

Egyptian and Arab indices continue to slide on Wednesday as investor jitters about foreign military intervention in Syria unabated

Egyptian stock exchange
A general view of the Egyptian stock exchange in Cairo (Photo: Reuters)

Egypt’s main index dropped a further 2.09 percent on Wednesday to land at 5,226, its lowest level in 7 weeks as investors acted on fears of foreign military intervention in Syria.

US Defense Secretary Chuck Hagel said on Tuesday that the US was “ready to go,” for military intervention against Syrian strongman Bashar Al Assad’s regime, which is accused of having used chemical weapons against its opponents in an attack which killed hundreds last week.

Egyptians, who accounted for 79 percent of the market, were the main net buyers, to the value of LE31.8 million, followed by Arabs, while other foreign investors net-sold LE42.8 million worth of shares.

Nearly all of the EGX 30 stocks suffered losses on Wednesday, at a session where only 18 out of 176 listed stocks rose.

Commercial International Bank, the index’s largest listed company, fell 2.14 percent, while in the finance sector Egyptian Financial Group-Hermes Holding Company also lost 3.28 percent.

Orascom Telecom dropped 2.54 percent. In the real estate sector, Palm Hills Development Company led the decline, tumbling 4.31 percent, followed by Six of October Development & Investment (SODIC), down 0.80 percent and TMG Holding, down 0.61 percent.

The broader EGX70 fell 1.82 percent on Wednesday.

Regional markets were also shaken, with the Qatar Exchange dropping 2.29 percent, the Kuwaiti index down 0.89 percent, Dubai Financial Market stocks down 1.3 percent, and the Abu Dhabi Securities Exchange falling 2.22 percent.

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