Egyptian telecoms take a knock amid Tahrir unrest
Egyptian shares have fallen for the eight day in a row after clashes in Tahrir continue. Egyptian shares have dropped $1.2-billion dollars of the market value but traders have said it was not as steep as they had expected, attributing it to non-Arab buying.
Telecom operators appear to be hit hardest, with worries the ruling military junta could cut communications if violence continues in the country. “Investors were speculative over shares like Mobinil and Talaat Moustafa,” said analyst Marwa Hamed. “Investors now are calmer in dealing with crises like these. They do not overreact.”
Egypt’s benchmark EGX30 shed 2.45 per cent to 4,023.45 points, its lowest level in a month. The broader indexes EGX70 and EGX100 were also in the red, taking a dive by 3.96 per cent to 443.26 points. The EGX100 plunged by 3.39 per cent to 696.64 points. Volume totalled LE1.3 billion, according to Bourse data.
“The fall was expected in the wake of the clashes. It’s natural,” said Mohssen Adel, a Cairo-based analyst. “Investors will be taken by selective buying after the decline. Today may witness selective buying on blue-chip shares.”
Egypt’s heavyweight CIB plunged 2.61 per cent to LE23.12 per share, while EFG-Hermes, the country’s biggest investment bank by market value, shed 1.8 per cent to LE11.99 per share.
The Central Bank of Egypt (CBE) reduced the size of its treasury bill auction yesterday, as yields surged to their highest level since the 2008 global economic crisis, according to Reuters.