[2008-01-22]  Global sell-off hits Egypt indexes, OT tumbles
Egypt's benchmark stock index posted it sharpest single-day drop in more than 18 months on Monday as foreign investors, worried about drops in global markets, dumped Orascom Telecom.

The Case 30 index tumbled 4.2 percent to 9,964.54 points, wiping away gains from a rally in late December. The index has shed about 5.5 percent since the beginning of the year.

Fears that a sliding U.S. economy could drag others down with it have hammered global equities, helping pull MSCI's benchmark index of world stocks to below its 2007 low.

"Today foreigners are net sellers," said Hashem Ghoneim, chief executive of El Nour Securities. "If selling pressures continue at these levels that is worrying."

Shares of Orascom, the fifth largest Arab mobile operator by market value, tumbled 7.4 percent to 78.12 Egyptian pounds ($14.15), their sharpest single-day drop in more than a year.

"Orascom is the most vulnerable stock when it comes to international actions," said Mohamed Radwan, head of international sales at Pharos Securities. "It's the most heavily weighted stock on any Egypt index."

Housing stocks also tumbled as drops in the largest companies spooked retail investors. United Housing tumbled 8.1 percent to 16.23 pounds and Cairo Housing 9.6 percent to 20.61 pounds.

"It's all about sentiment," Radwan said. "When you see the leader of the market being smashed, it does not increase your appetite and bearish sentiment just spreads among retailers and local funds."

Egypt's well-watched Hermes index fell 4.1 percent to 88,813.13 points and the broader CIBC index shed 4.9 percent to 416.25 points.

Source: © Reuters 2007.