Orascom leads Egypt lower

EGYPT STOCKS: Weakness in Orascom reflects weakness in share prices globally.(Getty Images)

Orascom Telecom , the largest Arab mobile operator by subscribers, dropped to its lowest close in two weeks on Tuesday as global stocks fell to a near 6-year low.

It helped pull Egypt's benchmark CASE30 index, which has lost more than a fifth of its value this year, down 2.76 percent to 3,473.53 points.

Orascom shares, which have fallen around 40 percent this year, shed 4.54 percent to 18.50 Egyptian pounds.

Orascom said in February it had asked for regulator permission to buy back up to 65 million of its own shares. The Egyptian stock exchange later said the telco was seeking to buy back a maximum of only 27.3 million shares.

"The company has been confusing recently for some investors," said Mohammed Radwan, trader at Pharos Securities.

Egypt's Hermes index lost 2.46 percent to 331.32 points and the broader CIBC index  shed 2.40 percent to 231.7 points.

"Investors who follow global trends are selling," Radwan said.

On Monday, Wall Street hit a 12-year low as investors grew nervous Washington's possible plan to increase its stake in Citigroup and other various bailout packages might not be enough to tackle the global financial crisis.

Shares of Commercial International Bank, Egypt's largest lender by market value, were the only gainers on the CASE30 index, rising 0.29 percent to 34.20 pounds.

Credit Agricole Egypt, the country's fourth largest lender by market value, on Sunday posted 2008 earnings above analyst forecasts.

"People are looking for a safe haven and banking sector results have been impressive," Radwan said. (Reuters)

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