CAIRO: Egypt's benchmark index fell 2.25 percent on Monday, ending the session with a loss of LE 5.07 billion ($850.17 million), reacting to violence the day before. Deadly clashes between army forces and protesters resulted in the death of 25 and more than 300 injuries on Sunday night when a march to Maspero, demanding Coptic rights and condemning an earlier attack against a church in Aswan, was itself met with violence. The EGX 30 closed at 3,938.02 points while the broader EGX 70 fell 1.69 percent and the EGX 100 dropped 1.85 percent. Bourse chairman Mohamed Omran said in a statement that he “understands the concerns of all investors and traders in the stock market regarding the security and political situation [in Egypt],” which weighed on the performance of the market on Monday. He added that stability in the political arena will be “swiftly reflected in the performance of Egypt's capital market.” The day's trading session started off with a 5 percent decline, shedding LE 10.2 billion ($1.7 billion) of total market capitalization, which reached LE 302.6 billion ($50 billion), according to an official at the stock exchange. It later recouped some of the losses, ending with a market cap of LE 308 million. Omran urged investors to look at the fundamentals of listed companies, more than 81 percent of which saw growth in the first half of 2011, he said in the statement. He added that based on recent discussions, global financial institutions are keen on investing in Egypt and are awaiting political stability before “pumping money and new investments into the market.” Sectors that lost the most included the travel and leisure industry, telecommunications, real estate, banks and construction materials. Ezz Steel dropped from LE 5.74 to LE 5.52, while Cairo-based Citadel Capital fell from LE 3.11 to LE 3.01. Nile Pharmaceuticals lost 5.74 percent, closing LE 32.00. Industries that did not see declines included the retail sectors, oil and gas, technology, media and utilities. Egyptian International Tourism Projects (EITP) was among the companies that fared well, gaining 4.97 percent. Most active gainers included Arab Aluminum, which closed at LE 40.95 rising, 4.97 percent. Development and Engineering Consultants, among the real estate sector, rose by 3.48 percent, reaching a value of LE 11.29. Suez Canal and inflation Meanwhile, Suez Canal revenues for September saw an increase of 6.9 percent over the previous year to reach LE 438.3 million, but a 7.3 percent decline from last month, according to Reuters. The waterway, along with oil and gas exports, tourism, and remittances from Egyptians living abroad, is a vital source of foreign currency in Egypt. Foreign currency reserves have been constantly decreasing, currently reaching about LE 24 billion, according to economists. Urban consumer inflation came in at 8.2 percent in the 12 months to September compared to 8.5 percent in August, Reuters reported citing CAPMAS. The urban consumer price index for September was 118.8 versus 109.8 a year earlier, the state statistics agency said. However, core annual inflation rose to 7.95 percent in the year to September from 6.98 in August, according to the central bank. Core inflation strips out subsidized goods and volatile items including fruit and vegetables. –Additional reporting by Reuters
