CAIRO: Negative global sentiment pushed Egypt’s main index down 2.2 percent, with all the market’s big caps registering losses except for developer Talaat Moustafa Group.
Talaat Moustafa gained 0.5 percent, riding a late wave of buying that helped cut early losses.
Traders said the stock was oversold after a court ruled last week to cancel a contract that gave the developer land for a key development, sending its shares down more than 8 percent.
The developer has said it did not expect the ruling to affect its contract and saw only limited impact on home sales.
"Some people see nothing will happen with the contract," said Karim Hosny of Pharos Securities. "Sentiment is still there on the stock."
A Cairo court on Tuesday postponed to Sept. 25 a session to hear closing arguments in the murder case retrial of the company’s former chairman.
One trader said the news may have had an effect.
Heavyweight Orascom Telecom (OT) fell 2.3 percent and Orascom Construction shed 1.4 percent.
Hashem Ghoneim of Pyramids Capital said he expects the market to keep falling until the end of Egypt’s fiscal year on June 30, as international markets show little sign of improvement.
"This is a start of a big fall. The market is starting to shake up, both locally and internationally. I hope I am wrong but that is what it looks like is happening," he said.
The index ended at 6,121 points.
Egypt’s stock exchange will be closed on Thursday, July 1, when Egyptian banks are closed for the start of the fiscal year.
The market will resume trading on Sunday, July 4.
