Egyptian Shares Decline Most Since September After Tahrir Square Violence

Egyptian stocks tumbled the most in almost two months after peaceful demonstrations in Cairo and Alexandria turned violent, killing two protesters and injuring hundreds over the weekend.

The benchmark EGX 30 Index (EGX30) lost 3 percent, poised for the biggest drop since Sept. 28, to 4,003.12 at 10:59 a.m. in Cairo.

Orascom Construction Industries (OCIC), the country’s biggest publicly traded builder, tumbled 3.3 percent. EFG-Hermes Holding SAE, the biggest publicly traded Arab investment bank, headed for the lowest level in more than a month.

“The clashes are affecting the market very strongly,” said Hazem Choucri, a foreign institutional trader at Cairo- based AlembicHC. “Some people are wondering if the government will be able to secure the elections. Seeing as it wasn’t able to deal with protesters in Tahrir Square, how will it deal with elections in the countryside?”

Security forces used tear gas and rubber bullets to clear Cairo’s Tahrir Square yesterday, Al Shorouk newspaper reported. One protester was killed and 676 were hurt in the capital, while another was killed in Alexandria, the state-run Middle East News Agency said, citing health ministry spokesman Mohammed Sherbini. Nine police officers were injured, according to Mena.

Egypt won’t delay parliamentary elections due to start Nov. 28, state-run television cited Mohsen El-Fangary, a member of the military council, as saying.

Orascom Construction lost 3.3 percent to 220 pounds. EFG- Hermes fell 1.7 percent to 12 pounds, headed for the lowest close since Oct. 17.