Egypt slips back from 19-month high

Egyptian shares decline after investors grow concerned that a rally this week that pushed the benchmark index to its highest since Egypt's uprising has now made shares too expensive, a trader says.

The index loses 1.4 percent to 5,887 points. On Wednesday it closed at 5,969 points, its highest since January 27, 2011. In January of this year, the index was trading near 3,600 points.

“The index is trading at 11 times price-to-earning, meaning a 9 percent expected return, which when compared to benchmark fixed income investments could reveal a relatively expensive equity market,” says Mohamed Kotb of Naeem Brokerage.

“The relative cheapness is not in favor of the equity market.”

Among blue-chips, Palm Hills drops 6.6 percent, Talaat Moustafa 3.5 percent and Orascom Construction 1.8 percent. - Reuters