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Blue chips drag Egypt to two-week low - Daily News Egypt

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Blue chips drag Egypt to two-week low

CAIRO: Egypt’s benchmark index fell 2.3 percent, dragged lower by blue chips and tracking losses in other markets. A sell-off at the end of last week in oil and global equities spurs local traders to reduce positions. Big caps that are usually among the most heavily traded among foreign investors, such as CIB and Orascom …


CAIRO: Egypt’s benchmark index fell 2.3 percent, dragged lower by blue chips and tracking losses in other markets.

A sell-off at the end of last week in oil and global equities spurs local traders to reduce positions.

Big caps that are usually among the most heavily traded among foreign investors, such as CIB and Orascom Telecom, weighed on the EGX30 index.

Shares in CIB slid 3.9 percent and Orascom Telecom lost 5.8 percent, their biggest single day decline since May 25.

All of the index’s 30 constituents barring one closed in the red.

"The heaviest weighted stocks on the index sold sharply (down) today, which led the entire market lower today following the same trend in global equities," said Mohamed Radwan of Pharos Securities.

On Friday, the euro slumped below $1.20 for the first time in more than four years on fears Hungary could become the next casualty in an escalating European debt crisis.

Disappointing growth in US payrolls in May added to doubts about the sustainability of the economic recovery, driving investors to the traditional safe havens of US and German government bonds, while oil fell more than 4 percent to end at $70.91 a barrel.

Index heavyweight Orascom Construction Industries dipped 3 percent to its lowest price since May 25.

Trading in Egypt’s bourse is seen subdued in the coming days tracking global markets and sentiment in the US markets, traders said.

"Unless the US markets begin to decline sharply, Egypt’s index will trade sideways," Radwan added.

The EGX30 dropped 2.3 percent and closed at 6,367 points.

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https://www.dailynewsegypt.com/2010/06/06/blue-chips-drag-egypt-to-two-week-low/
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