Egypt News

Orascom Construction Industries, the largest publicly traded builder in Egypt, lost for a second day. EFG-Hermes Holding SAE also declined.
Egypt's benchmark CASE 30 Index fell 418.25, or 7.1 percent, to close at 5,478.55, bringing the two-day retreat to 22 percent. The measure pared losses after the Federal Reserve, European Central Bank and four other central banks lowered interest rates.
``It's panic-selling in a market that lacks direction and is dominated by uncertainty,'' Tawfik Abdel Aziz, a trader at Cairo-based Delta Rasmala Securities, said in a phone interview. ``There's a major selloff and the market is reeling from the drops in the U.S., Asia and Europe.''
Yesterday, U.S. stocks fell, sending the Standard & Poor's 500 Index below 1,000 for the first time since 2003. Asian stocks slumped today, driving the Nikkei 225 Stock Average to its biggest drop since October 1987. Europe's Dow Jones Stoxx 600 Index also retreated.
Egypt's economy, which relies heavily on exporting goods to the U.S. and Europe as well as attracting tourists and investment from around the world, is likely to be dented by an economic slowdown in the developed world. EFG-Hermes, the biggest investment bank in Egypt, expects the country's economy to expand 5.7 percent in 2009 from 7.2 percent in 2008.
Egypt's CASE 30 Index, among the world's best performing measures in 2005, increased more than ten-fold to a record 11,935.67 on May 5 from the beginning of 2004. The jump came after a new Cabinet was appointed in Egypt that same year which promoted business by cutting taxes and tariffs as well as selling off state assets.
Orascom Construction fell 3.3 percent to 242 Egyptian pounds. The shares dropped as much 18 percent earlier today. EFG-Hermes lost 7.5 percent to 28.69 pounds.
``Sentiment has slightly improved, which is why we saw the recovery from earlier lows today,'' Mohamed Radwan, head of equities at Cairo-based Pharos Holding, said in a telephone interview. ``There was some buying of major stocks toward the end, triggering some confidence.''
Alexandria Containers & Goods lost 3.9 percent to 96.9 pounds after the Egyptian container handling company said full- year profit rose less than 1 percent to 154 million pounds ($28 million).
Commercial International Bank, the biggest publicly traded bank in Egypt, surged 57 percent to 37.49 pounds after plunging 40 percent yesterday. EFG-Hermes said the bank isn't exposed to the U.S. subprime mortgage market.
``People are saying they feel safe with domestic banks,'' Abdel Aziz of Delta Rasmala Securities said.
Egypt's market was closed until yesterday from Sept. 30 for the Eid al-Fitr holiday and Armed Forces Day.

EGYPT NEWS

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