Tracking losses in Europe and Asia, Egyptian stocks fell sharply on Tuesday as investors, driven by a bearish sentiment, sold stocks on concern Europe's worsening debt crisis will hurt the global economic recovery, traders said. The North African country's main index EGX 30 slid as big caps took dive in the wake of declines in global depositary receipts (GDRs), they added. "The whole sentiment is negative. It is not a local issue, it is more global sentiment," Teymour el-Derini of Naeem Brokerage told Reuters. For the fifth day in a row, the country's main index tumbled by 6.07 per cent to 5,937.5 points. The EGX 70 index, which measures 70 of the country's small and mid caps, plunged by 8.59 per cent to 513.13 points. The MSCI Emerging Markets index declined 3.6 percent, set for the lowest close since Sept. 4. The North Korea Intellectuals Solidarity group said on its website that the country's military was put on alert for combat. The euro dropped to the lowest level against the yen since November 2001 and fell against the dollar. "We are seeing a global retreat from risk, which is affecting all markets," Simon Kitchen, a senior economist at Cairo-based EFG-Hermes Holding, told Bloomberg. "Investors are seeking safety in US treasuries and the US dollar and yen. As the Middle East equity market most open to foreign investors, the Egyptian market has slumped," Kitchen said. "We may see a bounce in the market but that would be a small correction,” said el-Derini of Naeem Brokerage added. Orascom Telecom, the largest Arab mobile operator by subscribers, fell by 6.68 per cent to LE5.03 ($0.89) per share. EFG-Hermes, the country's largest investment bank by market value, dipped 7.18 per cent to LE26.37 per share. Orascom Construction Industries, Egypt's largest builder by market value, shed 5.31 per cent, closing at LE223.58 per share. Volume hit LE2 billion, according to the Egyptian Exchange.
