Driven by foreign selling, Egyptian stocks fell on Tuesday following global markets down, traders said. The North African country's main index EGX 30 shed 152 points, or 2.18 per cent, to 6,822.79 points. The EGX 70 index, which measures 70 of the country's small and mid caps, slipped by 1.5 per cent to 670.01 points. Net Arab and non-Arab sell-offs stood at LE10.4 million ($1.8 million) and LE82.8 million respectively , according to the Egyptian Exchange. Orascom Construction Industries, Egypt's largest builder by market value, slipped by 1.42 per cent, closing at LE248.56 per share. Orascom Telecom, the largest Arab mobile operator by subscribers, plunged by 3.55 to LE5.98 per share. Meanwhile, the euro and stocks fell as a relief rally sparked by a $1 trillion plan to contain Greece's debt crisis gave way to doubts as to how the country will cut its budget deficit. The euro dropped 0.5 per cent and world stocks 0.7 per cent after leaping in the previous session, while Chinese equities slipped two per cent to their lowest in a year, hit by mounting concerns over a worsening inflation outlook. Overall, world stocks as measured by Morgan Stanley Capital International (MSCI) were down 0.9 per cent. Emerging stocks dipped 0.7 per cent while emerging currencies also pulled back. After Monday's euphoria during which the STOXX Europe 600 banking index jumped nearly 15 per cent, investors turned cautious again, concerned that the massive plan was not a long-term solution to the euro zone's sovereign debt problems. In a sobering note, the International Monetary Fund said that even though Greece's public debt was sustainable over the medium term, the nation faced plenty of risks. Moody's credit ratings agency also warned it might downgrade Portugal's debt rating and further cut Greece's to junk status, noting the contagion effect of Greece's crisis on other euro zone members. Central Bank Governing Council member Axel Weber said late on Monday that bond-buying by euro zone central banks would be limited in scope.
