CAIRO: Small investors panicked by falling Egyptian stock prices pulled the market lower still on Monday in a bout of selling, traders said.
“A lot of the prices are being broken too easily. There are no support levels, Yasser Hassanein of Dynamic Securities said. The benchmark Hermes index dipped 2,160.97 points, or 3.3 percent, to 62,545.81 points. It hit a record closing high of 68,994.73 points on Feb. 1. The broader CIBC index fell 8.06 points, or 3 percent, to 257.83 points.
“The panic is due to retail clients, another trader said. They re either very bullish or very bearish. Traders said there was no fundamental reason to explain falling prices. EFG-Hermes, the most heavily traded stock in turnover terms, fell to LE 10.52 ($1.84), or 5.3 percent, to LE 187. Telecom Egypt fell LE 0.92, or 4.3 percent, to LE 20.70. Vodafone Egypt fell LE 1.14, or 1.1 percent, in heavy trade to LE 100.53. But Orascom Telecom bucked the trend, climbing LE 2.45, or 0.7 percent, to LE 345. Reuters