CAIRO: EFG-Hermes Holdings shares fell on Sunday and dragged Egypt s stock market lower in a burst of selling by investors not wanting to take part in the investment bank s capital increase, traders said. EFG-Hermes said on Sunday that holders of its stock at the end of the trading session would be able to buy shares in the capital increase at a ratio of two shares for each one held. You won t get the extra two shares for another two months so your money will be locked up for two months, said Hashem Ghoneim, CEO of El Nour securities, to explain why some investors sold their EFG-Hermes shares. Another trader said: Some retail investors panicked because they don t want their money to be frozen. Shares in EFG-Hermes last traded down LE 8.23 ($1.43), or 6.2 percent, at LE 125.50. The benchmark Hermes index fell 866.26 points, or 1.5 percent, to 57,189.52 points which is a 17 percent drop from its record closing high of 68,994.73 hit on Feb. 1. The broader CIBC index dropped 2.43 points, or 1.1 percent, to 229.93 points. Overall sentiment is still low with markets down across the area, Ghoneim said, in reference to falls in Gulf stock markets. Saudi shares fell by nearly 5 percent on Sunday. Alexandria Iron and Steel ended down LE 43.76, or 2.9 percent, at LE 1,451. Sidi Kerir Petrochemicals dropped LE 2.37, or 2 percent, to LE 115.80. Reuters
EFG-Hermes drags down stock market
