Foreign selling and decline in Orascom Telecom shares pulled Egyptian indexes down on Thursday, traders said. Arab and non-Arab investors made net sell-offs worth LE26.3 million ($4.7 million) and LE35.8 million respectively, they added. Net purchases of Egyptians, exceeding LE62 million failed to help the country's main index EGX 30, which shed 48.8 points, ending the week's trading at 7,451.72 points. Orascom Telecom, the largest Arab mobile operator by subscribers, slided by 5.28 per cent to LE7.17 per share. Orascom Telecom global depositary receipts (GDRs) fell in early trade in London after Algeria said it would block a key part of a potential $9 billion deal with South Africa's MTN. For the second day in a row, the EGX 30 index fell by 0.65 per cent, while the EGX 70 index, which measures 70 of Egypt's small and mid caps, slipped by 0.15 per cent to 717.65 points. Volume hit LE1.2 billion, according to the Egyptian Exchange. Orascom Construction Industries, Egypt's largest builder by market value, inched up by 1.04 per cent, closing at LE271.15 per share. Meanwhile, Greece's borrowing costs fell and the euro was off its one-year low on optimism that a bailout plan for Athens would be finalised soon, though Spain's risk premium rose after S&P's debt rating downgrade. Global equities drifted higher after two days of losses, supported by the US Federal Reserve's assurance that it would keep interest rates low for an extended period, and robust company earnings. Crude prices steadied above $83 a barrel and copper advanced 0.4 percent. "The market sees a bigger package for Greece, covering three years, as a bigger backstop. This is helping to address some investor fears and giving some support for the euro," said Kenneth Broux, market economist at Lloyds Banking Group. "But in the bigger picture the euro remains under pressure and I'd continue to sell rallies," he said. European Central Bank Governing Council member Axel Weber said on Thursday there was no acceptable alternative to rescuing Greece and urged quick approval of the aid package to prevent market upheaval and contagion to other states. The premium investors demand to hold 10-year Greek government bonds rather than euro zone benchmark German Bunds narrowed to 775 basis points from 800 bps at Wednesday's settlement close. World stocks measured by the Morgan Stanley Capital International (MSCI) All-Country World Index added 0.1 per cent.
