CAIRO - Driven by non-Arab selling, Egyptian stocks fell on Monday, traders said. Non-Arabs, who made net sell-offs worth LE68 million ($11.4 million) pulled Egypt's main index 1.34 per cent down, they added. Egypt's heavyweight Commercial International Bank (CIB), fell by 2.3 per cent 30.14 per crent to LE30.14 per share. EFG-Hermes, the country's biggest investment bank by market value, rose by 0.91 per cent to LE21.06 per share. ASEC jumped by 9.83 per cent to LE11.96 per share. The country's benchmark index EGX 30 plunged by 1.34 per cent to 5,277.44 points, they added. The broader indexes EGX 70 and EGX 100 were mixed. The EGX 70 added 0.25 per cent to 600.3 points, while the EGX 100 slipped 0.38 to 938.66points. Locals and Arabs made net purchases worth LE39.6 million and LE28.3 million respectively. Volume hit LE613 million, according to Bourse data. Meanwhile, the country's financial regulator rejected El-Sewedy Electric's plan to hold a shareholder meeting on dividend distribution and a capital increase as it had not sought regulatory approval beforehand. The Arab world's biggest listed cablemaker was planning to seek shareholder approval for a cash dividend of 1 pound per share and an issue of three bonus shares for every ten held, its investor relations director Ahmed el -Homossani told Reuters last week. He said the company wanted to present the proposals to shareholders on April 26. "We give notice that the authority does not recognise this invitation bearing in mind that... the company specified a date to hold the general extraordinary assembly without receiving the authority's approval for such an invitation," the Egyptian Financial Supervisory Authority (EFSA) said in a statement. Shares of Sewedy closed 0.15 per cent lower at LE40.73. El-Sewedy's extensive presence in the Middle East and North Africa could prove to be a temporary liability given the recent unrest in the region, Reuters reported, citing CI Capital, which cut the firm's price target by 28 per cent. A large Middle-East presence has exposed Sewedy, the Arab world's biggest listed cablemaker, to regional instability and associated business risks but its European and African operations may help reduce these risks, the brokerage said. It, however, maintained its "hold" rating on the stock, and said it expects the company's turnkey business to benefit from public-private partnership projects in the short-to-medium term. AlembicHC upgraded Ezz Steel, Egypt's largest steel maker, to "overweight" from "underweight," and said it does not expect allegations against the company's chairman over the acquisition of state-owned Ezz Dekeila Steel to affect minority shareholders. Ahmed Ezz, who was a top official in ousted president Hosni Mubarak's party, was accused of illegally taking control of Al-Dekheila Steel, which booked heavy losses as it supplied Ezz with steel at reduced prices. "Allegations pertaining to Ezz Dekeila Steel acquisition are a risk but we believe any negative outcome would be specific to Ahmed Ezz and is unlikely to harm minorities," the brokerage said.
