Egypt index slumps, led by real estate

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By Reuters

CAIRO: Egypt’s main index declined 2 percent, led by real estate stocks after the 2011 results of property developer Egyptian Resorts disappointed the market, traders said.

The real estate firm narrowed its full-year loss after making new revenue from its Sawari project on the Red Sea, the firm said on Sunday.

“The Egypt Resort results were worse than expected, because investors were looking for an improvement after it posted better third quarter results with fewer losses,” a trader said.

Many major real estate stocks declined. Egyptian Resorts dropped 2.8 percent, Talaat Moustafa 4.3 percent, Palm Hills 3.5 percent and Amer Group 2.6 percent.

“The whole market nonetheless is down and there is sentiment that there is no good news,” said the trader, who asked not to be named.

The index fell 2 percent to 5,067 points, following a trend on Sunday in other Middle East markets.

“Investors are exiting the market because there are no positive triggers or news,” said Sarah Tolba of Pharos Securities. “The market will see a further correction.”

Orascom Telecom also extended losses, slipping 3.1 percent.

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