[2008-01-18]  Egyptian shares fall in second day of profit-taking
Egypt's main stock indexes slipped on Thursday for the second straight day as local and Arab investors were cashing in profits from record highs, brokers said.

The benchmark Case 30 index, which had gained over 16 percent in the two months to Wednesday, fell 0.7 percent to 10,731.46 points, while the well-watched Hermes index declined 0.8 percent to 95,397.09 points.

The broader CIBC index lost 1 percent to 438.09 points.

"This is a continuation of the correction that started yesterday," said Hashem Ghoneim, CEO of el-Nour Securities. "The market has been rallying non-stop for a long time now and it was time for a correction, which I think was needed."

Arab and local investors were net sellers on Thursday as most blue chips were in the red.

Regional mobile operator Orascom Telecom led the decliners, shedding 3.3 percent to 86.65 Egyptian pounds ($15.81).

Ghoneim said the stock was affected by the falling price of its global depositary receipts in London, which were 2.6 percent down at $78.40 by 1353 GMT.

Orascom Construction Industries, the most heavily traded by turnover of the day, dipped 0.4 percent to last trade at 578 pounds, while shares in Telecom Egypt lost 1.3 percent to 22.30 pounds.

Shares in Ezz Steel were 2.1 percent lower at 68.50 pounds.

"Nevertheless, there was still some buying in the market pushing petrochemicals and Nile Cotton Ginning," Ghoneim said.

Nile Cotton Ginning jumped 14.9 percent to 7.11 pounds in heavy trading after it said on Wednesday it would expand its activities to real estate.

Shares in Sidi Kerir Petrochemicals rose 2.7 percent to 24.50 pounds, while Alexandria Mineral Oils (AMOC) last traded 1.8 percent higher at 82.50 pounds. ($1 = 5.48 Egyptian pounds)

Source: © Reuters 2007.