CAIRO: Egyptian shares declined as the unprecedented trial of former president Hosni Mubarak added to the country’s political uncertainties, but trade was slow as most traders remained transfixed in front of television screens.
Mubarak is the first Arab ruler to appear in court since uprisings swept the region, and analysts say it is still unclear if the trial will lead to reconciliation or drag on and fuel more recrimination.
"For those of us in markets, uncertainty is always an excuse to sell, whether it’s justifiable or not," said Akram Annous, MENA strategist at Al Mal Capital in Dubai.
"Markets want a smooth trial and an uncontroversial outcome, and when that looks more likely they start to discount it, but until then they are likely to be on edge as this drama unfolds," Annous said.
The benchmark index slid 0.9 percent to its lowest level since May 8. The index has fallen by 6.5 percent since July 17, mainly on concerns over political uncertainty.
"People psychologically want to stay away from the market until things are clear," said Mohamed Radwan of Pharos Securities.
NSGB, which is expected to release second quarter results soon, slipped 1.3 percent.
Mobinil dropped 2.1 percent. One of the lawyers at Mubarak’s trial called for a legal representative from Egypt’s three main telecoms firms to come to court to talk about the communication cut during the uprising.
Analysts said Egyptian shares are also under pressure after Asian stocks fell by about 2 percent on increasing fears that Washington’s efforts to cut spending will slow growth at a time when global factory output is already stagnating.
