Egypt, Arab bourses take a dive

CAIRO: Egypt s two main stock indexes dropped nearly one percent on Thursday as Arab investors sold to cover losses in the Gulf and local investors followed their lead downwards, traders said. The Gulf markets are having a negative effect on local retail investors here, continuing a sell-off based on yesterday s weakness, said Mohamed Radwan at Delta Securities. Shares in Abu Dhabi approached a five month low and shares in Dubai fell to a 12-week low on Thursday. Saudi Arabia s bourse sank to its lowest level in 20 months on Wednesday. The benchmark Hermes index fell 0.99 percent to 58,376.26 points and the widely watched Case 30 index fell by a similar margin of 0.96 percent to 6,561.05 points. The broader CIBC 100 index closed down 0.28 percent at 273.94 points. Egyptian shares defying the falling trend included the textile sector, with firms Kabo and Alexandria Spinning and Weaving both rising by similar margins of nearly five percent to 2.92 ($0.51) and 89.74 respectively. Traders said the banking sector, boosted by the sale of a stake in the Bank of Alexandria, was also strong. Commercial International Bank (CIB) ended 0.57 percent higher at 54.30 and was the second most heavily traded share by turnover. The bank said on Monday that it and Egyptian businessman Naguib Sawiris had completed details of their alliance in investment banking and brokerage operations. Shares in mobile phone operator Mobinil, which reported a 23 percent increase in its third-quarter net profit on Wednesday, also rose 2.33 percent to close at 163. Investment bank EFG-Hermes, a stock popular with retail investors, dropped 3.31 percent to 42.66 as the bourse s most heavily traded share.