Egypt's Talaat Moustafa plunges, leading index lower
CAIRO, May 21 (Reuters) - Shares in Egyptian real estate developer Talaat Moustafa (TMGH.CA) ended 14.5 percent lower on Thursday after the firm's former chairman was sentenced to death for murder, driving the benchmark index lower.
Talaat Moustafa shares last traded at 4.30 Egyptian pounds ($0.76), still well above a year low of 2.52 pounds set in March, as retail investors sold in a panic, traders said. The main index .EGX30 lost 4.68 percent to 5,699.52 points.
"It is because market sentiment is more prevalent than fundamentals," Wafik Daoud of Naeem Brokerage said of the share price move.
Moustafa, also a prominent ruling party politician, was sentenced to death on Thursday in a Cairo court for the murder of Lebanese singer Suzanne Tamim.
Moustafa, former chairman of the Talaat Moustafa Group and a prominent ruling party politician, had been accused of paying security man Muhsen el-Sukkari $2 million to stab Tamim to death at her home in Dubai in the United Arab Emirates on July 28.
CI Capital Research on Thursday reiterated a "strong buy" recommendation on the firm, Egypt's largest listed real estate developer by market value, with a target price of 11.5 pounds.
Other big cap shares followed Talaat Moustafa lower. Heavyweight Orascom Construction Industries (OCIC.CA)(OCICq.L) lost 4.71 percent to 200.03 pounds, and fellow developer Palm Hills (PHDC.CA) dropped 7.32 percent to 11.39 pounds.
Ezz Steel (ESRS.CA) shed 7.67 percent to 10.83 pounds, and investment bank EFG-Hermes (HRHO.CA)(HRHOq.L) lost 9.13 percent to 21.40 pounds. ($1 = 5.6287 Egyptian pounds) (Writing by Cynthia Johnston)
