Market dips following sell-off rumors

The trading week began on Sunday with a sharp decline due to rampant selling by Arab investors, with concurrent purchasing by Egyptian and foreign investors failing to offset losses. The EGX30 stock index fell by 2.4 percent for the day, shedding 162 points to settle at 6606 points.

Total daily transactions amounted to some LE850 million, including an LE72 million deal for stake in financial group EFG-Hermes–at LE30.2 per share–struck in the final minutes of the session.

A number of leading company stocks fell by between 0.38 percent and 8 percent for the day, including those of Pioneers Holding Company, Orascom Telecom, Orascom Construction and EFG-Hermes.

According to local experts, widespread rumors of an imminent bout of profit-taking led to an intensive selling spree on the part of Arab investors.

“The market is in bad condition because of the state of fear that led to a wave of selling," explained fund manager Essam Khalifa. "There are rumors circulating around the market, but I don’t want to encourage them," he added without elaboration.

Most other stock markets in the region, meanwhile, saw overall increases of between 0.18 percent and 3 percent for the day, led by the Dubai, Abu Dhabi and Saudi Arabian exchanges.

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