Egypt stock market dips, following Gulf bourses

Investment bank EFG-Hermes was among the hardest hit, shedding 9.1 percent to last trade at 49.20 Egyptian pounds ($8.54) despite a five-fold increase in first-quarter net income, announced at the session start.

Some brokers said the net income of 208 million pounds was below some estimates of 250 million and that the company’s plans to raise capital again weighed on the stock.

“The expectations were within the range of 250 million Egyptian pounds, and because we’re in bearish sentiment, and they released bottom-line below expectation results, the reaction was overly negative,” said trader Mohamed Kotb.

“EFG-Hermes ... went down the most, not in reaction to financials, but because it’s the most liquid stock and the most vulnerable,” added Mohamed Radwan of Delta Securities.

“The whole market moved downwards, and the sentiment will remain as is unless there are positive macro indicators in Egypt or until something positive happens in the Gulf markets -- a rebound or even stability,” said Kotb.

The benchmark Hermes index slipped 2.5 percent or 1,385.96 points to 53,900.91 and the Case 30 index dipped by the same percentage to 6,304.25, down 161.54 points. The broader CIBC index fell 2 percent to 223.32 points.

For the Hermes it was the lowest closing level since the retail panic of March 14, known as Black Tuesday.

The main textile stocks were among the major decliners. Arabia Cotton Ginning, the most active by turnover after EFG-Hermes, lost 6.2 percent to end at 13.07 pounds. Nile Cotton Ginning ended 7.7 percent down at 6.40 pounds.