Market Report: Egyptian stocks slide on domestic and global crises

The market's main benchmark EGX30 dropped 1.75 per cent to reach 4,613.51 points, and the broader EGX70 witnessed a steeper decline of 2.24 per cent

Egyptian stocks took another dive on Monday as investor uncertainty continues, following sharp dips in European markets.
The market's main benchmark EGX30 dropped 1.75 per cent to reach 4,613.51 points. The broader EGX70 witnessed a steeper decline of 2.24 per cent.
Despite the declines, some analysts still view the results as positive.
"We should not underestimate the circumstances the market is going through, either domestically or internationally. Its reaction is far from catastrophic," financial analyst Wael El-Nahas told Ahram Online.
Domestically, El-Nahas was referring to the storming of the Israeli embassy by protesters early on Saturday morning, which indicated the extent of the security gap on the Egyptian street. Also, the event's implications for strategic diplomatic relations between Egypt and Israel are yet to be seen.
A direct reaction to the weekend's violent incidents was seen yesterday, with the bourse experiencing its lowest trading volumes in seven years, reflecting investors' anxiety. The main benchmark lost a less than expected 1.24 per cent.
Globally, El-Nahas was referring to the debt crisis in many major economies in Europe as well as the United States, and its immediate implications on stock markets across the world.
Today witnessed heavy drops in major European markets, with France's CAC 40 losing more than 4 per cent during the session. Both FTSE 100 and DAX witnessed sharp declines in the beginning of trading, which amounted to more than 2-3 per cent each.
Out of 179 stocks traded, 154 finished in red, including all EGX30 stocks. Total market turnover was at a low of LE289 million (US$48.9 million), a continuation of poor volumes plaguing the exchange for more than 40 days.
Arab Investors drove the bourse's decline, comprising 7.25 per cent of the day's trading and net selling at LE14 million. Egyptians comprised 67.8 per cent of trading, net buying at LE12.8 million.
Foreign investors, whose presence was weak in yesterday's session, contributed to 25 per cent of today's trading, net buying at LE1.2 million.
Orascom Telecom, the third largest listed share in terms of capitalisation, lost 3.39 per cent of its value, as an Egyptian court postponed a lawsuit to cancel the company's planned stock split.
Private equity firm Citadel Capital, one of the most traded stocks on Monday, closed down 3.6 per cent. The firm said on Sunday it had completed a $70 million capital increase for its platform company Africa Railways.
Citadel Capital accounted for around 16 per cent of the day's total turnover.
Other major stocks such as Commercial International Bank, Orascom Construction Industries and Talaat Mostafa Group dropped 2.52 per cent, 0.94 per cent and 2.72 per cent respectively.
Pioneers Holding was among the day's top losers, sliding 5.18 per cent.The exchange had resumed trading on the share Monday after it had suspended it yesterday requesting clarification from the company on its investment plan.