CAIRO: Shares of Orascom Construction extended a tumble on Monday, pulling down Egypt s benchmark index, as investors worried that its earnings could fall.
Shares of Egypt s largest builder by market value plunged 13.6 percent to LE 103.02 ($19.14), their lowest in more than two years. The share was the second-worst performer on the index in the past five sessions, falling 30 percent.
The company posted a third-quarter profit earlier this month that fell short of analysts forecasts.
Investors were anticipating that future earnings could be hit by falling prices for fertilizers, a major component of Orascom s business.
People are not expecting the company to make as much money going forward, said Mohamed Tawfiq, trader at Delta Rasmala Securities. Foreign investors are also selling because they need liquidity.
The index fell for the ninth time in 10 sessions, closing at its lowest in 45 months. It shed 5.63 percent to 3,686.35 points.
Shares of Commercial International Bank, the best performer on the CASE 30 in the past five sessions, dropped 11.9 percent to LE 25.61.
It was more resilient to the sharp fall last week, and with buyers not in the market, it is more vulnerable than other stocks, said Mohamed Radwan, trader at Pharos Securities.
Shares of Orascom Telecom, the largest Arab mobile operator by subscribers, fell 4.62 percent to LE 21.49. Investment bank EFG-Hermes said it cut its short-term rating on the company to neutral from buy.
Shares of appliance maker Olympic Group dropped 5.97 percent to LE 20. The company said its third-quarter profit fell 60 percent as it spent more on marketing and salaries.
The Hermes index fell 5.14 percent to 350.93 points and the broader CIBC index shed 2.79 percent to 268 points.
