OCI plunges, pulls Egypt CASE 30 to 11-month low
August 12th, 2008 | by admin |CAIRO, Aug 12 (Reuters) - Orascom Construction Industries OCIC.CA(OCICq.L: Quote, Profile, Research, Stock Buzz) posted its sharpest single day decline in atleast two years on Tuesday, pulling Egypt’s benchmark index.CASE30 to an 11-month low.
Shares of OCI, Egypt’s largest listed builder, last traded7.7 percent lower at 330 Egyptian pounds ($62). The CASE 30index extended losses to a fourth straight session, closing 2.8percent down at 8,252.81 points, its lowest since Sep. 13.
“This is across the board selling reflecting a regionaltrend as foreign funds could be reshuffling investments to otheremerging markets,” said Aly Allouba, head of sales and tradingat Shuaa Capital in Egypt.
Markets in Dubai, Abu Dhabi, Bahrain and Kuwait also dipped.
“The fundamentals don’t justify what’s happening but thereare no fresh funds pumped into the market,” he added.
Other big caps also suffered as Orascom TelecomORTE.CA(ORTEq.L: Quote, Profile, Research, Stock Buzz) fell 5.8 percent to 51.25 pounds. PioneersHolding PIOH.CA lost 4.6 percent to 16.70 pounds.
Talaat Moustafa Group TMGH.CA, Egypt’s largest real estatecompany by market value, declined for the fourth straightsession, shedding 4.1 percent to last trade at 6.58 pounds.
Talaat Moustafa shares, down more than 30 percent this year,have tumbled about 15 percent since Thursday on media reportsabout company chairman Hesham Talaat Moustafa, brokers said.
The company has denied unspecified rumours about thechairman but officials have declined to comment in detail.
