Egyptian stocks plunge nearly 10%



REUTERS

Published — Monday 26 November 2012

Last update 26 November 2012 4:00 am

| نسخة PDF Print News | A A

CAIRO: Egypt’s stock market plunged yesterday in its first day open since President Muhammad Mursi’s seizure of new powers set off street violence and a political crisis, unraveling efforts to restore stability after last year’s revolution.
More than 500 people have been injured in protests since Friday, when Egyptians awoke to news Mursi had issued a decree temporarily widening his powers and shielding his decisions from judicial review.
Yesterday’s stock market fall of nearly 10 percent — halted only by automatic curbs — was the worst since the uprising that toppled Hosni Mubarak in February, 2011.
Investors had grown more confident in recent months that a legitimately elected government would help Egypt put its economic and political problems behind it. The stock market’s main index had risen 35 percent since Mursi’s victory. It closed yesterday at its lowest level since July 31.
Political turmoil also raised the cost of government borrowing at a treasury bill auction yesterday.
“Investors know that Mursi’s decisions will not be accepted and that there will be clashes on the street,” said Osama Mourad of Arab Financial Brokerage.
Just last week, investor confidence was helped by a preliminary agreement with the International Monetary Fund over a $ 4.8 billion loan needed to shore up state finances.
Saudi Arabia’s shares also slumped yesterday, dragging the market down to a 10-month low as the Egyptian crisis spooked regional investors, while other Gulf markets closed mixed.
The Kingdom’s heavyweight sectors — petrochemicals and banking — were the main drag. Saudi Basic Industries Corp. (SABIC), the world’s largest chemicals producer fell 2.3 percent. Al-Rajhi Bank dropped 1.2 percent and Samba Financial Group shed 2.2 percent.
The Tadawul All-Share Index dropped 2.1 percent to its lowest close since Jan. 25 and marked its biggest one-day loss since early June.
“The index broke the key support of 6,550 sharply to the down side,” said Mohabeldeen Agena, head of technical analysis at Cairo’s Beltone Financial. “We are expecting the bears to continue pushing it downward toward 6,300 levels."
In Dubai, property stocks helped lift the index, which gained 0.3 percent, after plans announced for a new mega project in the emirate.
Dubai’s Emaar Properties climbed 2.2 percent, Drake & Scull added 0.6 percent and builder Arabtec rose 1.3 percent.

“Real estate stocks are back on the move with Dubai’s plans,” said a Dubai-based analyst.
“This not only gives the market a signal that strong demand is back on track but also a positive push to market sentiment and appetite for these highly liquid stocks.”
Abu Dhabi’s Dana Gas climbed 5.1 percent, the most active stock on the index. The natural gas producer, in talks to restructure a $ 920 million Islamic bond, is offering bondholders cash and an average 8 percent coupon on two new sukuks to replace the existing one, two sources said.
In Kuwait, the index slipped 0.2 percent from Thursday’s five-week high as retail investors booked recent gains.
“It was a seller’s market with retail investors making a quick buck — people were buying again into small and big-cap stocks which is a good sign,” said Fouad Darwish, head of brokerage at Global Investment House. “They believe the momentum will continue.”
The market has gained around 4 percent since slumping to an eight-year low hit on Nov. 4, in part due to state-linked funds buying bluechip stocks to stabilize the market.
Dawish said this buying was muted on Sunday as the market held its ground.
Elsewhere, Qatar Navigation jumped 6.4 percent after the company said it scraped plans for a 20 percent capital increase. Doha’s benchmark rose 0.5 percent to its highest close since Nov. 15.

What's happening around Saudi Arabia

JEDDAH: The Ministry of Education is planning to increase the role of its subsidiary committees in the region and governorates to address the issue of schools increasing the fees on one pretext or another.A source in the ministry has been quoted as s...
JEDDAH: In view of a delay by Twitter in blocking the accounts of Daesh and its supporters, Saudi Twitterati have launched an online campaign demanding closure of these accounts which are being used to spread terror by those who have links with the...
JEDDAH: A young Saudi, who was born disabled, is today considered the best and most famous painter and designer in the Kingdom, professionals working in the area say.Despite being handicapped by birth, Rakan Kurdi, 22, has never given up and has mana...
DAMMAM: All Saudi airports, particularly King Fahd International Airport (KFIA) in Dammam, lack a tourism attraction strategy which requires a formal decision from the government, said Saeed Al-Qahtani, an investor in the tourism sector.He said: “In...
JEDDAH: Interpol is looking for two Saudis — a former Jeddah mayor and former president of a sports club — who have been convicted in cases related to the 2009 flash floods here.The ex-mayor was sentenced to seven years in prison while the sports off...
RIYADH: The Paris-based Organization for Economic Cooperation and Development (OECD) recently discussed here the scope of cooperation with the Kingdom’s Public Education Evaluation Commission (PEEC) in the field of education.The delegation was headed...
RIYADH: Investors and proprietors of recruitment offices have blamed the Ministry of Labor for the rise in the number of illegal brokers, saying that some of the rules are actually counterproductive and promoting black market.The ministry has put a c...
DAMMAM: A period of 20 months will be granted to deliver residential apartments for beneficiaries in the Eastern Province, starting from the day of delivering land to developers, and not from the date of signing the contract with them, according to a...
ALKHOBAR: Bribery can be eliminated by applying the laws strictly and creating public awareness besides an active role by citizens, experts say.Abdulrahman Al-Zahian, a researcher in legal affairs and public policy, said: “The Saudi anti-bribery law...
JEDDAH: Zuhair Rahbeeni, a consultant at the Pediatric and Clinical Genetics Department of Medical Genetics at King Faisal Specialist Hospital and Research Center, said that the criteria used for premarital health examinations fall short of proper st...
JEDDAH: The police in Jeddah found a runaway girl after 17 days. A news website reported that she had gone missing after she took a taxi on one of Jeddah's roads.The mother of the girl said that the police found the girl on Friday after 17 days. She...
JEDDAH: Since the launch of the Asir Initiative, “Asir … a major tourism destination all year round,” under the patronage of Asir Governor and Chairman of the Tourism Development Council Prince Faisal bin Khalid at the end of 2013, the region has man...
RIYADH: King Saud University (KSU), which is leading the vanguard in promoting and supporting scientific research in the Kingdom, will host the Saudi international conference on scientific publishing for 2015 to discuss issues and challenges surround...
RIYADH: The National Committee for Contractors (NCC) at the Council of Saudi Chambers (CSC) and representatives from the Ministry of Labor denied on Sunday delays in releasing SR2,400 in compensation to contractors once the criteria have been finaliz...
MAKKAH: Being at the front of the House of God and the peace and tranquility in the Grand Mosque are feelings that cannot be described, said Egyptian pilgrim Abdul Rahman Mustafa.The Umrah pilgrim appeared to be very happy and content. “Thank God, I...

Stay Connected

Facebook