We noticed you're blocking ads.

Keep supporting great journalism by turning off your ad blocker.

Questions about why you are seeing this? Contact us

Font Size

- Aa +

Thu 9 Oct 2008 03:09 AM

Font Size

- Aa +

Egypt stocks fall again on global market woes

CIB recovers after 40% plunge on Tuesday as US and European rate cuts announced.

Key Egyptian stock indexes fell sharply for the second straight session on Wednesday in line with world markets, with foreign investors dumping shares as fears about a global economic recession intensified.

But the benchmark CASE 30 index, which plunged more than 16 percent on Tuesday, trimmed some of its losses toward the end of the session after major central banks cut interest rates by half a percentage point in a coordinated action designed to ease fears about the financial crisis.

The index, down 11 percent in early trade, last traded 7.09 percent lower at 5,478.55 points. The Hermes index also fell 7.04 percent to 493.86 points and the broader CIBC index skidded 4.52 percent to 297.98 points.

Karim Hosny, a trader at Pharos Securities, said the move by the US Federal Reserve, the European Central Bank and the Bank of England among others, sparked a wave of buying that stemmed the decline.

Orascom Construction Industries , Egypt's largest listed builder, fell as low as 204 Egyptian pounds ($37.05) a share before crawling back to last trade at 242 pounds, a 4.43 percent drop compared to Tuesday's session.

Investment bank EFG-Hermes fell 6.2 percent to last trade at 28.69 pounds.

Some shares, however, bucked the trend to end the session in the green.

Commercial International Bank (CIB), Egypt's top private sector bank, rose 19.39 percent to 37.49 pounds, recovering from a 40 percent plunge on Tuesday.

"The prices are very cheap," said Mohamed Kotb, investment manager at Jazira Asset Management. "It is natural to see buying power in the CIB after yesterday's drop," he said. ($1 = 5.5059 Egyptian pounds) (Reuters)

Arabian Business: why we're going behind a paywall

Real news, real analysis and real insight have real value – especially at a time like this. Unlimited access ArabianBusiness.com can be unlocked for as little as $4.75 per month. Click here for more details.