Egyptian stocks take a tumble on IMF concerns
After several days of gains, Egypt's stock market lost ground on Tuesday, with main EGX30 index losing 1.05 percent to reach 5,404 points.
Foreign investors were net sellers, offloading LE57.8 million in shares, unlike Egyptian and Arab investors who were net buyers.
News about the Egyptian government rejecting a $750 million emergency loan from the International Monetary Fund (IMF) and confusion about a recent visit from an IMF team seem to have affected investors' appetites.
“The Egyptian government has achieved what it has to by preparing and initiating the implementation of an economic and social reform programme. We have thus the right as a founder and a member of the IMF to a loan that equals 300 percent of Egypt’s share in the fund,” Minister of Finance El-Morsi El-Sayed Hegazy said during a press conference on Tuesday.
According to IMF regulations, emergency loans are limited to 50 percent of the country's quota per year and 100 percent of its quota in total.
Total trading volume was LE305.1 million ($45 million); out of 175 listed stocks, 90 fell while some 42 gained.
Orascom Construction Industries (OCI), the biggest company on the Egyptian market, fell by 0.36 percent.
The telecom sector ended the day on a mixed note, with Telecom Egypt falling by 0.22 percent, while Orascom Telecom Holding (OTH) soared by 1.63 percent.
Commercial International Bank (CIB) pulled the banking sector up, gaining 0.43 percent.
The broader EGX70 index lost 0.25 percent.