Egypt bourse index tumbles by 4.6pc

December 07, 2012 - 1:23:22 am

DUBAI: Egypt’s bourse tumbled yesterday after clashes between political parties killed five, spooking regional investors, while other Gulf markets were lackluster.

Worsening political turmoil spooked Arab investors, who were net sellers on the bourse against Egyptian buyers, exchange data showed. Non-Egyptians have previously been net buyers amid the turmoil. “(The current level) represents a very good entry opportunity for medium-term players but not the retail,” said Safa Ghabbour, assistant fund manager at Misr Capital Investments in Cairo. The benchmark fell 4.6 percent, taking losses to 11 percent since Mursi awarded himself extraordinary powers in a decree on November 22.   

Commercial International Bank and Orascom Construction Industries were the main drag, losing 5.1 and 3.4 percent respectively. El Sewedy Electric  dropped 6.6 percent. All except seven shares fell on the main 30-stock index. 

In Oman, the index gained 0.7 percent, rising to a three-week high as financial stocks attracted fresh buying. Al Izz Islamic Bank jumped 4.8 percent, up for a third session after being listed on Monday. Bank Muscat rose 0.2 percent, Oman Investment and Finance Co climbed 1.1 percent. Bank Sohar  added 0.6 percent.

“There is a strong allocation from local asset managers and foreigners are coming back after volumes picked up,” said Adel Nasr, United Securities brokerage manager. 

Trading volumes surged on Muscat’s bourse yesterday to 71.6 million shares, the highest one-day amount since June 2009, as a government fund, Investment Stabilization Fund, resumed activity to boost the market’s momentum, Nasr said.

In Kuwait, the index ticked up 0.07 percent, snapping two sessions of heavy losses. “The market was very sluggish today with thin trading on stocks like NBK and Zain,” said a Kuwait-based trader. 

Elsewhere, Dubai’s measure eased 0.07 percent in thin trade amid a lack of local catalysts. The market is still up 18.9 percent year-to-date. Abu Dhabi clipped 0.1 percent off its benchmark but is holding on to 11.3 percent year-to-date gains. Reuters