World market dragging Egyptian stocks down

CAIRO: The main Egyptian stock indexes fell more than 2 percent on Monday, pulled down by similar declines on markets around the world. Traders said that Orascom Telecom and Orascom Construction Industries led the way down because they figure so prominently in the portfolios of foreign investors. Other shares then followed, they added. Those two have the most weight in the index. When they go down, it has an effect on sentiment and people start selling, said Hashem Ghoneim of El Nour Securities. Egypt has been hit by the herds in Asia and Europe, added Bassim Arida of CIBC Brokerage. Orascom Telecom shed 6.2 percent to last trade at LE 375.11, the lowest price in about six weeks. Orascom Construction Industries lost 3.5 percent to LE 269. Telecom Egypt lost 5.4 percent to 15.29 after news that it would not take part in the auction for Saudi Arabia s second fixed-line license, but traders said the decline was driven mostly by sentiment in the international markets. El Sewedy Cables fell 2.2 percent to LE 41 despite reporting a 52 percent increase in 2006 net profit, to LE 502 million from LE 330 million in 2005. Overall volume was a moderate LE 961 million and declining stocks outnumbered advancing stocks 52 to 28. The benchmark Hermes index and the Case 30 index both closed 2.1 percent down, at 61,084.44 and 6,928.54 respectively. The broader CIBC-100 index ended the session 0.6 percent lower at 286.80 points.