CAIRO - Egyptian stocks declined to the lowest level in a month on Wednesday after clashes between police and protesters in Cairo's Tahrir Square. The clashes were the most violent since April 9 in the downtown square, the epicenter of demonstrations that ended president Hosni Mubarak's three-decade rule in February, Bloomberg reported. "The fighting wasn't big but it's still worrying for some investors because the situation may escalate," said Ashraf Akhnoukh, a senior equity sales trader at Cairo-based Commercial International Brokerage. "The low volume is a good indication that people are not panicking," Akhnoukh said. The country's benchmark index EGX 30 fell by 2.03 per cent to 5,283.9 points. The broader indexes EGX 70 and EGX 100 were also in the red, shedding 2.61 and 2.42 per cent to 627.64 and 967.52 points respectively. Locals and Arabs made net purchses worth LE639,767 and LE11.7 million ($2 million). Non-Arabs made net sell-offs worth LE12.4 million. Volume exceeded LE1 billion, according to Bourse data. Egypt's heavyweight Commercial International Bank (CIB) shed 1.84 per cent to LE28.34 per share. EFG-Hermes, the country's biggest investment bank by market value, plunged by 3.02 per cent to LE19.91 per share. Orascom Construction Industries (OCI) slipped by 0.7 per cent to LE266.42 per share. Talaat Moustafa, the country's biggest listed builder, slid by 4.61 per cent to LE4.76 per share. Orascom Telecom, the largest Arab mobile operator by subscribers, lost 1.22 per cent LE4.06 per share. Telecom Egypt, the country's landline monopoly, shed 1.34 per cent to LE14.68 per share. Credit Suisse upgraded landline monopoly Telecom Egypt to "outperform" from "neutral," and said it sees strong wireline revenue in 2011 as a result of the surge in internet use in Egypt following the recent revolution, according to Reuters. Wireline revenue was resilient in the first quarter and appear set to remain robust this year due to the increase in international capacity sales as well as continued capacity investment by mobile operators and internet service providers, Credit Suisse said. In addition, Telecom Egypt's shares appear too cheap at current levels and represent a relatively defensive investment in a volatile Egyptian market, the brokerage said. It, however, cut its price target on the stock to LE16.5 from LE17 Egyptian to reflect higher market risks following the recent anti-government protests. Telecom companies including Vodafone Egypt were forced to cut their lines during the height of the protests in February. Telecom Egypt owns a 45 per cent stake in British operator Vodafone's local unit.
