Following world markets, Egypt's main index shed 136 points on Tuesday, traders said. For the sixth day in a row, the country's benchmark index EGX 30 fell by 2.17 per cent, ending the day's trading at 6,120.71 points. The EGX 70 index, which measures 70 of the country's small and mid caps, slid by 2.85 per cent to 534.73 points. Volume hit LE570.8 million ($100.5 million), according to the Egyptian Exchange. Orascom Telecom, the largest Arab mobile operator by subscribers, dipped by 2.68 per cent to LE5.08 per share. EFG-Hermes, Egypt's largest investment bank by market value, fell by 1.38 per cent to LE29.93 per share. Shares in developer Talaat Moustafa shed 1.19 per cent, to LE7.47. Meanwhile, world stocks hit a two and a half week low., Reuters reported. Oil and the euro also slipped as investors grew nervous over the funding situation of banks about to repay 442 billion euros ($545.5 billion) to the European Central Bank. "There's concern over the ECB expiry of the massive liquidity facilities member state banks have been enjoying ... We're seeing a real sense of uncertainty about the market at the moment, a real lack of conviction," IG Markets analyst Ben Potter noted. "When we have that there's a natural tendency for the market to drift lower, which is what we're seeing." The state of banks will become clearer when the details of bank stress tests are published next month. Sources told Reuters on Monday more than 100 banks in Europe will be examined in a second round of stress tests to gauge how they can handle shocks to the financial system. Morgna Stanley Capital International (MSCI) world equity index fell one per cent while the FTSEurofirst 300 index lost 1.6 per cent. Emerging stocks dropped by 1.8 per cent. Chinese stocks fell four per cent to a 14-month low as investors started pulling funds from the market to prepare for a major initial public offering by Agricultural Bank of China, pointing to tight liquidity in China's markets. "Investors are nervous, shifting their attention back to Europe because a massive amount of money will move there," said Hideki Hayashi, global economist at Mizuho Securities in Tokyo. "The euro could revisit its eight-year low against the yen." The dollar rose 0.4 per cent against a basket of major currencies. US crude oil fell 2.2 per cent after forecasts indicated tropical storm Alex would skirt the main production region in the US Gulf of Mexico, limiting disruptions to a few precautionary shutdowns.
