CAIRO - Egyptian stocks dipped on Thursday, mirroring declines in world equities and driven by Arab selling, traders said. Amid low volumes, the country's benchmark index EGX30 shed 2.21 per cent to 4,335 points on a grim economic outlook from the US and signs of slowing growth in China and Germany, they added. Egypt's market capital shed LE5.9 billion to LE335 billion ($55.8 million), according to Bourse data. Local stocks were also under psychological pressure, as investors were worried about the unknown after the appointment of a new Bourse chairman, one analyst said. "The appointment of a new chief for the Bourse is the main reason for the decline on Thursday. There are no positive signs for investors to be optimistic," said Islam Aaty, a Cairo-based financial analyst. Mohamed Omran was named on Wednesday as head of the Egyptian Exchange, replacing Mohamed Abdel-Salam, who is the chairman of Bourse's clearing arm Misr for Clearing, Settlement and Central Depository. The broader indexes EGX70 and EGX100 fell by 2.75 and 2.5 per cent to 518.73 and 782.87 points respectively. Arabs made net sell-offs worth LE21.7 million, while volume hit LE309 million, according to Bourse data. Global stocks were down more than 4 per cent, prodding investors into the safe-haven US dollar and government bonds. The greenback climbed to a seven-month high against a basket of major currencies, as investors dumped riskier trades in favour of the world's most liquid currency. Orascom Telecom, the largest Arab mobile operator by subscribers, slid 5.11 per cent to LE3.34 per share, while Mobinil fell by 3.34 per cent to LE96.24 per share. Commercial International Bank, the country's biggest listed lender, fell by 1.71 per cent to LE24.14 per share. EFG-Hermes, Egypt's biggest investment bank by market value, slipped 0.42 per cent to LE16.66 per share. Orascom Construction Industries was slightly down by 0.2 per cent to LE273.58 per share. In Europe, the FTSEurofirst 300 fell 4.4 per cent. Britain's FTSE 100 lost 4.8 per cent and Japan's Nikkei closed down 2.1 per cent. World stocks as measured by the MSCI index were down 4.4 per cent. The more volatile emerging markets stock index slid 6.2 per cent. The sharp rally in the dollar pushed down US crude oil prices by more than 5 per cent, while gold fell nearly $50 an ounce in a broad retreat in the commodities sector. "Hidden behind the Greek drama over the past few weeks and unveiled again yesterday with the [Fed] statement and action, the unfolding global economic slowdown is back to front and centre," said Peter Boockvar, equity strategist at Miller Tabak & Co in New York. The Federal Reserve warned on Wednesday of significant risks to the already weak US economy as it launched a plan, dubbed Operation Twist, to lower long-term borrowing costs and bolster the battered housing market. Adding to the gloom about the global economy, China's manufacturing sector contracted for a third consecutive month in September, while business activity in Germany grew at its weakest pace in more than two years in September and new orders fell for a third month. The euro fell to an eight-month low of $1.3384, its lowest since January, and was last down 0.9 percent at $1.3443. Spot gold last traded down at about $1,734.
