CAIRO - Egyptian stocks took a dive on Sunday on foreign selling, traders said. Arab and non-Arab investors made net sell-offs worth LE6.6 million ($1.1 million) and LE1.1 million respectively, they added. The North African country's benchmark index EGX 30 slipped 0.33 per cent to 6,928.57 points. The EGX 70, which measures 70 of the country's small and mid caps, fell by 0.59 per cent to 725.05 points. Volume hit LE675 million ($116.4 million), according to the Egyptian Exchange. Orascom Construction Industries fell by 0.13 per cent to LE271.48 per share. Orascom Telecom, the largest Arab mobile operator by subscribers, shed 0.46 per cent to LE4.32 per share. On Friday, world stocks held near the previous day's two-year high while oil hit fresh two-year peaks after strong US data this week encouraged investors to maintain their risk positions into 2011, according to Reuters. Thursday's US data showing that demand for a range of long-lasting US manufactured goods surged in November and consumer spending rose for a fifth straight month reinforced expectations for strong economic growth in the fourth quarter. The Morgan Stanley Capital International (MSCI) world equity index edged higher to just below Thursday's peak, which was its highest since September 2008, set just before the collapse of Lehman Brothers. The index is up 9.6 per cent this year. Fund tracker EPFR said investor focus shifted from bonds to equities in the final weeks of 2010, with equity funds globally taking in a net $4.5 billion for the week ending December 22. Bond funds saw redemptions totaling $2.3 billion. Ratings agency Fitch downgraded Portugal on Thursday, citing burgeoning debt levels and a tough financing environment, a move analysts said was largely expected by investors. The downgrade puts Fitch's rating for Portugal on a par with Moody's A1 rating, but still two notches above that of Standard and Poor's A-minus. Trading was very light, with markets closed in Germany, Italy, Spain, Denmark, Finland, Norway, Sweden, Switzerland, Greece, Austria, Hungary, and Iceland. U.S. markets were also closed to observe the Christmas holiday.
