CAIRO: Egypt’s benchmark share index slumps after renewed demonstrations indicate the country’s political troubles may be far from resolved.
Tens of thousands of Egyptians packed city centers across Egypt over the weekend to demand faster reforms and voice frustration at what they regard as foot-dragging by military rulers and government officials.
The protests have been peaceful, but the demonstrations were continuing on Sunday.
"There are still worries over the reaction of the protesters because they still feel their demands are not met. I think we are not in a stable position," says Margo Moussa, a fundamentals analyst at Arab Finance Brokerage.
The EGX30 closes 1.7 percent lower at 5,271 points.
"Volumes are pretty low and there isn’t enough fundamental news even though Friday’s protest were quite civil, so foreigners are only 2 percent of the turnover," says Sarah Tolba, a senior trader at Pharos Securities.
Financial service company Pioneers Holding is the bourse’s most traded stock, with shares worth LE 22 million ($3.69 million) changing hands. It is the index’s biggest decliner, falling 6.9 percent.
Real estate firms are among the index’s biggest decliners, with investors fearing that demands by protesters to hold people accountable for corruption under the old regime may prompt the government bring more business executives to trial, traders say.
"With the protests happening, real estate firms will be the hardest hit because most of the accused chairmen are from that sector," says Noha El-Shahed, a trader at Cairo Capital Securities.
Egypt’s biggest listed developer Talaat Moustafa Group (TMG) falls 5.7 percent. It is the bourse’s fifth most active stock, with 13.5 million pounds of its shares traded.
Last week, an Egyptian judge referred 25 people, including Egyptian businessman Ibrahim Kamel, a former board member of real estate firm Egyptian Resorts, to trial on charges of inciting the murder of protesters in the Jan. 25 uprising.
Shares in Egyptian Resorts fell 4.3 percent.
An Egyptian court last week acquitted Palm Hills Development Chairman Yasseen Mansour of graft. Shares in the country’s second biggest developer shed 2.9 percent.
Only two stocks gain on the index. South Valley Cement is up 0.5 percent and Sidi Kerir Petrochemicals is up 1 percent.
