CAIRO: Shares of Heliopolis Housing, Egypt s second largest developer by market value, tumbled nearly 17 percent on Monday, helping drag Egypt s index to its lowest close in more than 10 months.
The stock, down 50 percent this year to Sunday s close, plunged 16.89 percent to LE 44 ($8.30) on fears real estate prices may fall because of an oversupply of property.
There could be an oversupply in high-end property, said Karim Hosny, trader at Pharos Securities. People are expecting a hiccup in real estate and they are also bearish on Egypt.
Other real estate shares also fell. Shares of Medinet Nasr, Egypt s third-largest real estate company by market value, retreated 7.1 percent to LE 37.05.
Shares of Talaat Moustafa Group, Egypt s largest real estate developer, extended declines after falling 14 percent on Sunday. The share last traded 7.63 percent lower at LE 6.66.
Shares in the company dropped on continuing media reports about its chairman Hisham Talaat Moustafa, traders including Hosny said. A company statement denied unspecified rumors but officials declined to comment in detail.
Commercial International Bank, Egypt s largest lender by market value, was one of two gainers on the CASE 30 index, rising 1.7 percent to LE 49.
Shares of the lender have been roughly unchanged since a Dubai government controlled fund said on August 3 it had bought a 5.24 percent stake. The CASE 30 index has fallen about 8.2 percent during that time.
The CASE 30 retreated 1.40 percent to 8,489.04 points. The Hermes index fell 1.94 percent to 738.12 points. The broader CIBC index shed 3.13 percent to 411.25 points. -Reuters
