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Market Report: 'Black Day' sees Egypt stocks plummet

Main index falls 3.6 per cent as a perfect storm of economic and political factors sweep the market two days before the weekend's mass protests.
29.09.11 | Source: Ahram Online

Egyptian stocks took an unexpected plunge into the red Wednesday, seeing more than LE10 billion wiped from their value as a perfect storm of economic worries and political pressures swept the market a day after the ruling military finally announced a timetable for elections.
The benchmark EGX30 finished 3.58 per cent down at 4,095 points following a four-hour session that saw stocks take an across the board battering.

“I have been working in the market for almost 20 years -- today could be considered a black day for the exchange," said Mostafa Badra, a capital markets expert.

It was the third largest daily loss for the Bourse since trading resumed on 23 March after seven weeks of closure. The main index has plunged 42.7 per cent in the aftermath of January’s uprising.

Just eight of the 187 stocks listed on the exchange made gains on Wednesday, a performance reflected in the 6.86 per cent tumble of the broader EGX70. All sectors either remained stagnant or finished in the red, with basic resources the biggest loser.

Total turnover was a comparatively healthy LE310.4 million, bolstered by a strong foreign contingent that bought a net-total of LE26.39 million of stocks.

“Some foreign investors are taking advantage, buying at low prices and waiting for the rebound of the market,” said Issa Fathy, vice president of the securities division in Cairo's Chamber of Commerce.

Trading was suspended for 30 minutes after the EGX100 fell 5 per cent in its opening hour. Such measures -- dubbed ‘circuit breakers’ -- have been used four times since they were introduced to the Bourse on its reopening six months ago.

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