| DUBAI, April 3
DUBAI, April 3 Cairo's bourse fell to a new 2013
low on Wednesday as foreign investors sold stocks on fears that
Egypt's currency would be further devalued.
The Egyptian pound has fallen sharply against the dollar on
the black market in the last few days, due to dwindling supply
of the U.S. currency. A further decline is expected unless more
hard currency enters the market.
The value of the dollar is 17 percent higher on Wednesday
than the official rate said Mohamed Radwan, director of
international sales at Pharos Securities.
"The dollar has shot up dramatically on the black market -
that's why people are selling on devaluation worries - they want
to get out before FX losses get higher," said Radwan.
Cairo's benchmark dropped 2.2 percent to 4,926
points, its lowest level since Dec. 6.
The index broke the 5,000 psychologically critical level,
also sparking selling by investors that follow technical
Large-caps tumble with Commercial International Bank
losing 4.3 percent. Orascom Construction Industries
fell 2.6 percent and Orascom Telecom shed 2
In Saudi Arabia, the index ticked up 0.08 percent as
investors hesitated to increase risk ahead of the weekend due to
uncertainty on the global front.
"We're still being driven by sentiment from Europe and the
U.S. and unless we see something positive coming out of there,
it's getting difficult to see a rally in the short-term," said
Muhammad Faisal Potrik, research analyst at Riyad Capital.
"Even with earnings season almost starting, we haven't seen
a major push in the market - the drag could be from the global
European shares eased on Wednesday as investors awaited this
week's policy decisions by the Bank of Japan and European
Central Bank followed by U.S. employment data.
In Dubai, bargain hunters helped lift the market after a
recent correction. Small-caps dominated trade with mortgage
lender Tamweel surging 9.1 percent and insurance
companies also rising.
Trading and momentum has slowed in recent sessions as
investors await first-quarter earnings to justify increasing
risk after an early-year surge. UAE companies are expected to
post results in late April.
The emirate's index climbed 0.6 percent, extending
2013 gains to 14.6 percent and up for a second day since
Monday's two-month low.
Abu Dhabi's index gained 0.5 percent, but remains in
a tight trading range since the last four weeks.
In Qatar, the bourse added 0.2 percent, extending
gains since Monday's near four-week low. Investors bought
bluechips ahead of first-quarter earnings.
Qatar National Bank and Industries Qatar
advanced 1.2 and 0.9 percent respectively. Masraf Al Rayan
climbs 1 percent.
"Foreign institutional investors are building positions in
these stocks for Q1," said a Doha-based trader who asked not to
be identified. "Local investors are speculating on smaller-cap
stocks for quick gains."
* The index fell 2.2 percent to 4,926 points.
* The index ticked up 0.08 percent to 7,178 points.
* The index gained 0.8 percent to 6,814 points.
* The index climbed 0.6 percent to 1,854 points.
* The index advanced 0.5 percent to 3,022 points.
* The index climbed 0.2 percent to 8,569 points.
The index rose 0.8 percent to 6,057 points.
* The index slipped 0.2 percent to 1,090 points.