CAIRO, September 17, 2018 - Local stocks were in the red on Monday, driven by sell-offs by foreign institutions and investment funds as well as purchases by Arab and local investors. The main index EGX30 fell by 0.71 per cent to stand at 14,650.97 points. The broader indices EGX70 and EGX100 declined by 1.38 per cent and 1.13 per cent to stand at 723.5 points and 1,843.39 points, respectively, according to bourse data. Market capitalisation lost about LE9.24 billion to stand at LE815.753 billion, compared to LE825 billion a day earlier. Meanwhile, Gulf stocks declined on Monday as investors worried about reports the United States was preparing a new round of tariffs on Chinese imports. Such a move would set up a possible escalation in the trade dispute between the two world powers. After closing at a new six-month low on Sunday, stocks in Saudi Arabia failed to recover on Monday. Saudi Basic Industries Corp, the largest listed company in the Gulf, opened 1.7 per cent down, with Al Rajhi Bank falling 0.9 per cent. Gulf markets followed the earlier slide in Asian shares. US President Donald Trump is likely to announce new tariffs on about $200 billion of Chinese imports as early as Monday, a senior administration official told Reuters. In Dubai, Emaar Properties sank 2.1 per cent, reversing an earlier gain. It follows the United Arab Emirates's approval on Sunday of a law allowing retired expatriates to stay in the country with renewable five-year visas if they meet conditions, such as investment in property worth 2 million dirhams ($544,514) or financial savings of 1 million dirhams. "It's obviously a positive development from a long-term perspective for the UAE real estate sector. Near-term, the sentiment in the stock market remains weak and don't expect much reaction on UAE real estate stocks from this announcement," said Ayub Ansari, senior analyst at SICO in Bahrain. In Abu Dhabi, First Abu Dhabi Bank fell 1.4 per cent, while Abu Dhabi Commercial Bank dropped by the same amount. The Abu Dhabi index was 0.9 per cent down.
