Stocks slipped back on Thursday, with the housing and real estate sector hit hardest after a rally which began two weeks ago. The main indexes dropped between 0.5 and 0.7 percent in what brokers said was a natural correction to the recent boom. Institutions had to trim their holdings to maintain the balance in their stock portfolios, they added. Sixth of October Development and Investment (SODIC) fell on news that its merger talks with property developer Palm Hills had failed. It lost 5.8 percent to last trade at LE 154.50 ($27.15). People were spooked by the Palm Hills news but there had already been selling, said Bassim Arida of CIBC brokerage. CIBC s own latest research on SODIC gives the shares a fair value of LE 208, he added. The correction also pulled down Orascom Hotels and Development, which had gained about 20 percent since the beginning of the month. It ended 5.3 percent down at 55.50. Heliopolis Housing, another high flier on speculation about the value of its extensive land holdings, also suffered, losing 5.8 percent to LE 465.01. The shares had hit an all-time high of LE 547.90 during trade on Wednesday. But the most heavily traded stock, investment bank EFG-Hermes, rose 2.2 percent to 39.84.
