CAIRO, September 24, 2018 - Local stocks were in the red, driven by sell-offs of local institutions and investment funds and purchases by Arab and foreign investors. The main index EGX30 declined by 0.42 per cent to stand at 14,200.68 points. The broader indices EGX70 and EGX100 fell by 0.02 per cent and 0.24 per cent to stand at 687.81 points and 1,751.37 points, respectively, according to bourse data. Market capitalisation lost about LE3.8 billion to stand at LE784.7 billion, bourse data showed. Meanwhile, Gulf stocks fell on Monday, mirroring a slide in Asian shares after China's decision to cancel talks with the United States increased concerns about a protracted trade war. The Kuwaiti main index slipped, reversing some of its recent gains ahead of joining of the FTSE Russell emerging market index this week, a development expected to draw investment from passive funds. Entry to the emerging market index will be in two phases, on Monday and on December 24. Arqaam Capital estimates the inflows in across the two phases will reach $1 billion. In Dubai, shares in contractor Drake and Scull International (DSI) were dragging down the index. DSI was down 2 per cent and was among the stocks registering the highest trading volume. Shares in the company plunged over the past two weeks after it said its shareholders would meet on Sept. 27 to decide whether to dissolve it, under an article of United Arab Emirates company law requiring firms to vote on whether they should continue operating if their accumulated losses have reached half of issued share capital. Tabarak Investment, DSI's biggest shareholder with 13.73 per cent, told Reuters in a statement last week that it was committed to restoring DSI to financial health, and had arranged for the company to obtain over 1 billion dirhams of projects. The statement, however, failed to lift sentiment. The Abu Dhabi index was down 0.3 per cent. Aldar Properties was down 0.5 per cent, dragging down the index. Aldar Investment Properties, a fully-owned subsidiary of the Abu Dhabi real estate giant, started marketing on Monday a US dollar sukuk. The Saudi exchange was closed for a national holiday.
