Egypt News

The dealers in Egypt reported that the Egyptian main index shed over 3 percent on Sunday as foreign investors sold big caps, but local bargain-hunting in shares like Orascom Construction Industries trimmed market losses The CASE 30 index plunged over 9 percent in early trade but pared losses to end 3.1 percent down at 5,491.76 points. The Hermes index lost 3.39 percent to 497.04 points and the CIBC index fell 3.33 percent.

"Some buying appetite from local institutions started dragging the market back up," said Mohamed Tawfiq, head of international sales at Delta Rasmala Securities.
Market heavyweight Orascom Construction, which dropped over 5 percent in early trade, ended the day 0.82 percent higher at 230 Egyptian pounds ($41.64) as bargain hunters snapped up the share.
Commercial International Bank and Orascom Telecom also recouped early losses, with CIB gaining 1.31 percent to 35.50 pounds while OT ended roughly flat at 34 pounds.
"Relative to the market this is significant, because most of it is in the red," Tawfiq said.
The Egyptian market has been roiled in recent days by the global financial crisis that has seen many foreign investors withdraw from the market to ensure liquidity elsewhere.
"As long as we have a liquidity squeeze worldwide, they (foreign investors) will be net sellers," said investment manager Mohamed Kotb at Jazira Asset Management.
Foreign investors were net sellers by 35 million Egyptian pounds ($4.5 million), while non-Egyptian Arab investors were net sellers by 25 million pounds, stock exchange data showed, even as locals were buying.
"We are touching very attractive levels in terms of multiples. Most of the leading stocks are trading around eight times their earnings multiples," Kotb said.
On the decline side, investment bank EFG-Hermes lost 9.43 percent to end at 25.45 pounds, and Ezz Steel was down 6.31 percent to 14.40 pounds.

EGYPT NEWS

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