Egypt bourse slips on political unrest

Egyptian stocks fell to a 31-month low on foreign and institutional selling, following a traumatic night, traders said. Panic-stricken investors were taken by a bearish sentiment after deadly clashes between Christian Copts and military police left 25 dead and 329 injured, they added.

"There is no doubt that the political situation in general in Egypt since early this year and what happened on Sunday, in particular, are contributing to what is happening now in the Egyptian economy and Stock Market," Mohabeldeen Agena, the chief technical analyst at Cairo-based investment bank Beltone Financial, told The Egyptian Gazette.

A lack of economic and regulatory transparency has added fuel to the flames, according to Agena. "Lack of a specific plan for Egyptian politics and the economy and three privatised companies reverting to the Government by court order have added to investors' worries, especially as the Government has not made it clear what ought to be done next," he said.

The country's benchmark index EGX30 fell by 2.25 per cent to 3,938 points, while the broader indexes EGX70 and EGX100 fell by 1.69 and 1.85 per cent to 446.78 and 684.21 points respectively.

Volume totalled LE353.6 million ($59.3 million), according to Bourse data."I believe that the lack of liquidity in the market at this time reflects the concern of investors and a preference to stay out of the market. In the short term, I expect a slight rebound of the EGX30 index to near the 4,300-point level after the sharp dive over the past few weeks," he forecast.

Commercial International Bank, the country's biggest listed lender, slipped 0.57 per cent to LE22.81 per share. EFG-Hermes, the country's biggest investment bank by market value, slid 4.78 per cent to LE11.96 per share.

Orascom Construction Industries dipped 2.95 per cent to LE200.11 per share. Orascom Telecom, the largest Arab mobile operator by subscribers, plunged 1.55 per cent to LE3.17 per share; Mobinil shed 1.13 per cent to LE90.7 per share.

Earlier in the day, Mohamed Omran, the Chairman of the Egyptian Exchange, said there was no intention to shut down the Bourse, urging investors to snap up shares in listed firms in good financial shape.