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Egypt Bourse Extends Losses as Buyers Abstain

Jul 07, 2008

Egyptian traders work in the Cairo Stock Exchange. (Khaled Desouki/AFP/Getty Images)
Egyptian traders work in the Cairo Stock Exchange. (Khaled Desouki/AFP/Getty Images)

CAIRO—Egypt shares reversed early session direction and fell on Monday for the fourth session in a row led by shares in Orascom Telecom (OT) as the market lacked buyers, traders said.

"The market fell in a bull trap and opened positively as sellers were not that aggressive. It turned bearish with the low level of liquidity available for buying," said Wafik Dawood, senior account executive at Naeem Brokerage.

Egypt's benchmark index CASE 30 rose to a high of 9,647.09 points before closing 1.2 percent lower at 9,413.82 points. The index lost over 4 percent on Sunday in its biggest one-day loss in about two months.

"We have a bad summer history and this reflected on the market," Dawood said.

OT, the regional mobile giant, lost 1.9 percent to last trade at a year low of 63 Egyptian pounds ($11.8).

Other big caps suffered too with investment bank EFG-Hermes dipping 1.2 percent to 46 pounds and Ezz Steel falling 4.9 percent to 73.01 pounds.

Shares in the Commercial International Bank (CIB) were 2 percent lower at 76 pounds. Overall, the broader CIBC index was 2.7 percent down to 495.62 points, while the well watched Hermes index fell 1.3 percent to 819.41 points.

But Orascom Construction Industries bucked the market and last traded 0.3 higher at 363 pounds.

"Long term investors were still hunting for buying opportunities in the stock as they are betting on OCI's future in the growing fertiliser business," Dawood said.

($1 = 5.34 Egyptian pounds)

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