[2008-01-23]  Egypt shares sink with falling global markets
Egypt's bourse extended losses on Tuesday, falling for the fifth consecutive session, as foreign selling weighed on big caps including investment bank EFG-Hermes HRHO.CA(HRHOq.L: Quote, Profile, Research), brokers said.

The benchmark stock index Case 30 .CASE30 lost 3.3 percent to close at 9,639.49 points after hitting a low of 9,416 points during the session. The index has shed more than 9 percent in the previous four sessions.

"The aggressive international correction is driving foreign selling in the local market," said Mohamed Fouad, Institutions Desk Director at Prime Securities.

Shares from Sydney to London plunged for a second day on Tuesday, dragging commodity prices with them and promising a woeful start for Wall Street as investors dumped assets exposed to the risk of a global economic slowdown.

Foreign investors were the only net sellers on the day, accounting for 31.3 percent of selling value.

"As usual in such situations, international investors change positions, exiting emerging markets which are considered more risky," Fouad said.

Brokers said the fall in global deposits receipts (GDRs) in London also has put pressure on big caps.

A drop of 7.2 percent in the GDRs of the investment bank EFG-Hermes by 1220 GMT to $20.50 weighed on its shares, which last traded 5.9 percent lower at 56.77 Egyptian pounds ($10.25).

Shares of Orascom Telecom ORTE.CA(ORTEq.L: Quote, Profile, Research), the fifth largest Arab mobile operator by market value, lost 2.2 percent to 77.01 pounds after tumbling 7.4 percent on Monday. The company's GDRs in London were 2.2 percent lower at $68.30 by 1306 GMT.

Ezz Steel ESRS.CA(AEZDq.L: Quote, Profile, Research) also was in the red, dipping 3.2 percent to last trade at 62.25 pounds.

Orascom Construction Industries OCIC.CA(OCICq.L: Quote, Profile, Research) escaped the bearish sentiment and gained 0.5 percent to last trade at 547 pounds after its GDRs rose 0.5 percent to $198 by 1214 GMT.

Egypt's well-watched Hermes index .HRMS fell 2.9 percent to 86,217.57 points and the broader CIBC index .CIBC shed 3.4 percent to 402.10 points.

Source: © Reuters 2008