CAIRO: Turmoil in global equity markets hit Egypt s main stock indexes on Tuesday for the second straight session, traders said, with the benchmark CASE 30 falling nearly 3 percent.
This is just in line with global markets. People are panicked, says Hashem Ghoneim of El Nour Securities.
Global stocks fell on Tuesday while demand for safe-haven government bonds grew as investors awaited details of Washington s $700 billion bailout plan from US Treasury Secretary Henry Paulson.
The CASE 30 index fell 2.88 percent to 7,141.51 points. The Hermes index lost 2.43 percent to 639.48 points. The broader CIBC index shed 2.61 percent to 365.51 points.
Karim Hosny of Pharos Securities said the kidnapping of 19 hostages, including 11 tourists, had a negative impact on the market as well.
There was no positive news at all. It was all negative, he said.
Kidnappers in Egypt have seized 19 hostages including German, Italian and Romanian tourists on the Sudanese border, Egyptian officials said on Monday. Tourism is one of the most important drivers of economic growth in Egypt.
Shares in investment bank EFG-Hermes, which fell 7.17 percent on Monday, skidded 5.47 percent to last trade at LE 34.55 ($6.31).
Market heavyweight Orascom Construction Industries (OCI) shed 3.11 percent to LE 314.10 a share. Regional mobile operator Orascom Telecom (OT) fell 2.42 percent to LE 41.90 a share.