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Egypt indexes drop as Goldman Sachs report hits OT - Daily News Egypt

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Egypt indexes drop as Goldman Sachs report hits OT

CAIRO: Egypt s stock indexes declined on Sunday, led by a 2.77 percent dip in heavyweight Orascom Telecom after Goldman Sachs downgraded it, citing continuing operating difficulties in Pakistan and Algeria. Orascom Telecom shares ended at a fresh year closing low of LE 47.65 ($8.81), helping drag the benchmark CASE 30 index 0.7 percent lower …


CAIRO: Egypt s stock indexes declined on Sunday, led by a 2.77 percent dip in heavyweight Orascom Telecom after Goldman Sachs downgraded it, citing continuing operating difficulties in Pakistan and Algeria.

Orascom Telecom shares ended at a fresh year closing low of LE 47.65 ($8.81), helping drag the benchmark CASE 30 index 0.7 percent lower to 8,342.25 points. The Hermes index lost 0.78 percent to 723.28 points.

The Goldman Sachs report had an impact, said Teymour El-Derini of Beltone Financial. OT took the market down.

Goldman Sachs downgraded OT on Friday to neutral from buy and cut its price target to LE 65 from 100. The news had helped pull OT s GDR shares down 5.68 percent on Friday, dealers said.

Overall on Sunday, Egypt s broader CIBC index was 0.02 percent lower at 404.74 points as local investors dominated trade.

But a surge in real estate developer Talaat Moustafa helped temper market losses, gaining 12.58 percent to LE 6.71 as it continued to recover from declines after the firm s former chairman was charged in a murder case last week.

Traders said investors were returning to the stock after the company said last week it had replaced its chairman and would meet all its project obligations on time.

To an extent, nothing worse can happen to the stock now, said Mohamed Tawfiq of Delta Rasmala Securities.

Market heavyweight Orascom Construction Industries also gained, adding 2.11 percent to LE 363 as traders engaged in bargain hunting. The shares are well below a year closing high of LE 485 set in April.

But several other big caps slipped lower, with investment bank EFG-Hermes losing 3.16 percent to LE 47.52. Telecom Egypt dropped 4.34 percent to LE 15, and dealers said it was following OT lower.

Topics: FJP

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https://www.dailynewsegypt.com/2008/09/07/egypt-indexes-drop-as-goldman-sachs-report-hits-ot/
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