Stock index falls to a new three-year low

Cynthia Johnston
2 Min Read

CAIRO: The benchamrk Egyptian stock index tumbled 2.6 percent to a fresh three-year low on Wednesday as foreign investors and institutions continued to dump big caps including Orascom Construction Industries.

The benchmark CASE 30 index sank to 4,098.51 points, while shares of heavyweight Orascom plunged 8.77 percent to LE 130 ($24), their lowest point in over two years.

What we are seeing is blue chips still declining due to psychology, said Wafik Dawood of Naeem Brokerage. So long as we have negative news from financials in the United States, we will continue to decline on the bigger picture.

Orascom Construction, Egypt s largest builder by market value, on Thursday posted a third-quarter profit below analysts expectations.

Shares of Orascom Telecom, the largest Arab mobile operator by subscribers, extended losses, dropping 7.7 percent to LE 23. Orascom shares have fallen 70 percent this year to Tuesday s close.

The firm s third-quarter profit also fell short of analysts expectation as revenue from its Pakistan subsidiary disappointed.

The Hermes index .HRMS fell 2.18 percent to 384.52 points, and the broader CIBC index retreated 7.75 percent to 278.6 points.

Shares of Ezz Steel bucked the trend, climbing 0.49 percent to LE 10.26 after the firm said it would pay a LE 2 dividend.

They think it s not worth selling at this price with a dividend coming up, said Amr Alaa, trader at Prime Securities.

Share This Article
Leave a comment