CAIRO: Egypt’s benchmark share index dropped to its lowest close since May 10 on continuing concern anti-government protests will escalate after an address by the prime minister on Monday evening fell short of activist demands.
Traders said there a few signs the political turbulence will calm down in the coming days.
"It will continue to weigh on the market, which is totally dependant on what’s going on in the street," said Hashem Ghoneim of Pyramids Capital. "If the protests escalate in Tahrir the market will be pressured to go down even more."
Protesters in Cairo’s Tahrir Square and in Alexandria and Suez since Friday are seeking more reforms and swifter trials over those who were killed in earlier protests
In his televised address, Prime Minister Essam Sharaf promised a cabinet reshuffle within a week.
He said he had asked Interior Minister Mansour El-Essawy to speed up measures to restore security in Egypt and promised to reshuffle provincial governors. He also asked judges to make the trials of former officials public.
Protesters rejected Sharaf’s statements as not enough and vowed to camp in the streets until their demands were met.
"People are feeling that nothing is changing, and protests are continuing and returning to their previous high levels," said Tarek Abaza, trading manager at Naeem Brokerage.
The EGX30 fell 2.8 percent to 4,971 points. The Egyptian Exchange temporarily suspended 22 shares from trade during the course of the day after their declines surpassed 5 percent.
Commercial International Bank (CIB) was the most active stock, with shares worth over LE 129.2 million ($21.70 million) traded. It fell 4 percent.
Only six companies on the index gain, including two dollar-denominated stocks, Maridive and Oil Services, which gained 2.6 percent, and Egypt Kuwait Holding, which rose 1.7 percent.
Landline monopoly Telecom Egypt, which added 2.7 percent, was the second most traded, with shares worth LE 46.8 million changing hands.
Dubai’s shares declined for a second day as global sentiment did little to help sentiment, while Abu Dhabi and Qatar’s markets also ended lower.
Spreading euro debt fears hit world stocks on Tuesday, affecting regional investor confidence.
Dubai’s index declined 1 percent to 1,533 points, hitting a fresh July low.
Most stocks fell with Emaar Properties down 2 percent, leading in volumes.
Analysts polled by Reuteres estimate the developer to post a 55.3 percent drop in quarterly net profit.
"Emaar would be interesting in my opinion — the headline number will probably not look pretty most probably due to some write offs, but I would look at the operating side," said Ibrahim Masood, senior investment officer at Mashreq Bank.
"Particularly where Emaar acts as a land lord."
Dubai Islamic Bank shed 1.5 percent, Air Arabia slipped 1.3 percent. Dubai Financial Market eased 0.8 percent.
Large-cap stocks booked losses in Abu Dhabi alongside the index which slipped 0.4 percent to 2,713 points.
National Bank of Abu Dhabi slipped 0.9 percent, First Gulf Bank declined 1.4 percent and Aldar Properties fell 3 percent.
Elsewhere, Qatar’s index ended 0.9 percent lower at 8,425 points, its lowest close since June 30.
All stocks were down bar one. Vodafone Qatar bucked the trend and gained 0.4 percent, despite analysts’ estimates the telecom operator will post a quarterly net loss between 137 million riyals and 143.5 million riyals.
Qatar Telecommunications shed 1.1 percent and Qatar Islamic Bank dropped 1.1 percent.
Masraf Al Rayan fell 2.2 percent, booking the largest losses.
