Market Report: Egypt stock losses spiral on

Shares dip for the fourth day, 1.15 per cent down as foreign investors unload more high-cap stocks to a shrinking pool of buyers

Egyptian stocks slipped for their fourth consecutive session on Wednesday, as global market turmoil and domestic worries continued to weigh on investor sentiment, spurring further sell-offs for high-cap shares.
The benchmark EGX30 dropped a further 1.15 per cent to reach 4,486 points, taking its losses to some 6 per cent since the start of the week.The broader EGX70, an indicator of smaller, more speculative action, fell an even large 1.47 per cent.
"Share prices are low but they're not attacting investors," said Mostafa Badra, a capital markets expert. "There's a complete lack of appetite due to the ambiguity of the political and economic situation."
Main indexes have been falling since Sunday, reflecting unease after the weekend's storming of the Israeli embassy by protesters and the ruling military's subsequent threat of re-applying Egypt's reviled emergency law.
From 181 listed stocks, 25 gained and 153 declined during Wednesday trade, with all sectors finishing in the red but four, which registered no change. Travel and leisure took the biggest hit, closing down 1.93 per cent
Total market turnover was an improved LE345.4 million with foreign partipation unusually high at 36.8 per cent.
Commentators attributed the apparent climb in overseas investors to a single transfer of a block of shares in Egypt's main private equity firm, Citadel Capital. The company saw the highest amount of trade -- some LE65.367m -- and finished down 4.5 per cent as a result of the sale.
Foreign investors were net-sellers to the tune of LE30.06m, Egyptians and other Arabs were marginal buyers.
GDR stocks, which are co-listed on the London exchange, also took hits, reflecting resumed turmoil on Europe's markets as fears grow over a Greek default and its effect on the eurozone.
The Commerical International Bank was second highest trader and shed a further 1 per cent. Egypt's largest listed firm, Orascom Construction Industries (OCI), was next and traded down 0.1 per cent in spite of the day's announcement about its plans for a power plant in Rwanda.
Other losses were relatively restrained, with only smaller-cap firms like Cairo Investment and Real Estate taking bigger hits of over 5 per cent.There was isolated good news for Arab Dairy Products, up 5 per cent, and lone high-cap Mobinil, up a solid 1.97 per cent.
With the market depressed, Egyptian exchange financial authorities have mulled various initiatives to encourage trade, including the introduction of short-selling.
On Sunday, the exchange finally launched Egypt's Future, an investment fund designed for contributions by all Egyptians which was first floated in March.
Initial subscriptions were sold at LE10 per certificate and drummed up LE50 million in funds. But commentators believe much more is needed.
"The governement need to promote it more and interest other Arab funds. They need about LE100 million for it to have an impact," said Badra.