Egypt Stocks Drop Most in Week on Planned Protest, Growth Risk
January 05, 2012, 9:01 AM ESTBy Zahra Hankir
Jan. 5 (Bloomberg) -- Egypt’s stocks retreated the most in more than a week led by Orascom Construction Industries on concern a protest later this month may further destabilize the North African country and slow economy growth.
Orascom Construction declined 1.2 percent after it said damage to equipment at a power plant that was attacked is estimated at no more than 10 million Egyptian pounds ($1.7 million). Talaat Moustafa Group Holding, Egypt’s biggest publicly traded real-estate developer, dropped the most in more than a week. The benchmark EGX 30 Index fell for the third day, losing 0.7 percent, the most since Dec. 28, to 3,627.80 at the 2:30 p.m. close in Cairo. The measure rose 0.2 percent this week.
“People are already concerned about phase two of the revolution on Jan. 25,” said Wafik Dawood, director of institutional sales at Cairo-based Mega Investments Securities. “We don’t see any catalysts ahead of the long weekend and in general the market still lacks appetite.”
Clashes in Cairo last month between security forces and demonstrators calling for an earlier end to military rule left at least 17 people dead. Protesters are preparing to take to the streets on Jan. 25 to mark the anniversary of the mass rallies that drove former president Hosni Mubarak from power. Egypt’s market will close on Jan. 8 to mark a Coptic Christmas holiday.
Egypt’s stock measure, which slumped 49 percent in 2011, was the third-worst performing equity index tracked by Bloomberg last year after markets in Greece and Cyprus.
Orascom Construction fell to 200.81 pounds, the lowest close since Dec. 28. Egypt’s biggest publicly traded builder resumed normal operations at the site that was set ablaze on Jan. 3. Talaat Moustafa slumped 3.4 percent, the most since Dec. 28, to 2.87 pounds.
--With assistance from Mariam Fam in Cairo. Editors: Shanthy Nambiar, Daliah Merzaban
To contact the reporter on this story: Zahra Hankir in Dubai at zhankir@bloomberg.net
To contact the editor responsible for this story: Claudia Maedler at cmaedler@bloomberg.net
