A weekend church bombing that killed 21 people and subsequent street protests weigh on Egypt's benchmark index EGX30 as some foreigners sell blue-chip stocks, traders say. The dip is likely to be brief, they say, because the stability that has bolstered Egypt's economy remains broadly intact and recent figures show the global economy strengthening. The index falls 0.1 percent to close at 7,073 points after touching a seven-month high of 7,142 points on Thursday. Index heavyweights Commercial International Bank (CIB) and Orascom Construction Industries (OCI) drop 1.1 percent and 1 percent, respectively. CIB is the most heavily traded stock, while OCI posts its biggest single-day drop since 1 December. A suspected suicide bomber wounded 97 people in the blast in Alexandria, which prompted hundreds of Christians in Muslim-majority Egypt to protest against a failure of the authorities to protect them. "There is lack of clarity, and investors always want clarity. Any investor would be worried. It is normal since this is a major incident that harms anyone in Egypt," says Hisham Metwalli, an analyst at Arab Finance Brokerage. "Protests and clashes that followed the attack also raised concerns on stability." Mohamed Kotb, director of asset management at Naeem Brokerage, expects investor appetite to return, spurred by expectations that a global economic recovery is gathering strength. "Globally, there are expectations of an economic rebound . There is positive sentiment on equities as long as the EGX30 index remains above the 7,000 point level," says Kotb. Orascom Telecom (OT) inches up 0.2 percent. It fell earlier in the day after an Algerian website reported, without citing sources, that Algeria's government had selected U.S. firm Curtis, Mallet-Prevost, Colt & Mosle LLP to find a valuation for OT's unit Djezzy, which Algeria wants to buy. There are concerns among investors that the price set by the American firm will be lower than expected, Metwalli says. He says an absence of news on Vimpelcom's revised $6.6 billion bid to buy OT assets is also weighing on OT stock. Vimpelcom said on Dec. 21 it wanted to renegotiate the deal.
