Egypt’s benchmark index declined for a third day, dragged down by blue-chips including Orascom Telecom after Algeria said it would take up to 100 days to complete a valuation of the company’s Algerian unit Djezzy.
The Algerian government said on Monday it had provisionally appointed law firm Shearman & Sterling LLP to advise on Djezzy.
It said the firm is scheduled to complete its valuation of the unit — the subject of a long-running dispute between the Algerian government and Orascom — within 100 days.
Orascom Telecom dipped 0.9 percent and is the most traded stock on the Egyptian Exchange. Traders said that absence of news on Djezzy has renewed investor concern that the price set for the unit might be lower than expected.
"Investors are worried because Algeria has not announced anything new… People are awaiting news," said Hisham Metwalli of Arab Finance Brokerage.
The EGX30 index fell 0.7 percent to 7,155 points, a critical resistance level according to traders. If the index breaks above 7,250 points, its next resistance level will be between 7,400 and 7,500 points, they said.
Big-cap Commercial International Bank fell 1.4 percent, its biggest single-day decline since Jan. 2, as investors book profits after the bank’s positive performance in most of December.
"There is some selling pressure after several blue-chips reached high levels in the past weeks," said Amr Reda of Pharos Securities.
Citadel Capital posted its biggest single-day drop since June 30, falling 3.3 percent.
Ezz Steel and Maridive Oil and Services gained 2.1 percent and 1.1 percent respectively, after prices of steel and oil rise.
