By Reuters
CAIRO: Egypt’s main share index tumbled to a three-week low, dragged down for a fourth day by a series of reports that indicate Egypt’s economic and political troubles will not be resolved as quickly as thought, traders said.
Real estate shares fell after a string of bad company results, while financial companies declined partly on signs an International Monetary Fund (IMF) agreement won’t be signed as soon as had earlier been expected.
Investors have also grown concerned since Egypt’s parliament voted on Sunday to begin steps to withdraw confidence from the military-appointed government, traders said.
The benchmark index fell 3.3 percent to 5,052 points, its lowest since Feb. 22. The index had risen by almost 50 percent in the two months until March 7.
“The intention of parliament to make a vote of no confidence has affected the market. Everyone is reassessing the situation,” said Osama Mourad of Arab Finance Brokerage.
Mohamed Radwan of Pharos Securities said financial companies plunged partly on a report in Al-Ahram newspaper that an accord for a $3.2 billion loan Egypt is seeking from the IMF won’t be signed until April instead of the previously announced March.
Egypt is counting on the loan to help it stave off a fiscal crisis after more than a year of economic and political instability.
Pioneers Holding plummeted 9.8 percent, Citadel Capital 9.6 percent and EFG-Hermes 7.5 percent.
Radwan said real estate companies also suffered after Palm Hills, Talaat Moustafa and Amer Group reported losses or poor earnings for 2011 over the last few days.
“The three of these have really issued lousy results,” he said.
Talaat Moustafa, which plunged 9.8 percent, said last week its full-year profit had fallen 39 percent, while Amer Group, which dropped 9 percent, reported on Tuesday its 2011 net profit had dropped 56 percent.
Palm Hills, which plummeted 8.9 percent, on Monday reported a LE 331.3 million loss for 2011 compared to a LE 526 million profit for 2010.
