Global financial market turbulences - Egyptian stock indices fell by almost 1.5% on Thursday, to close out a trading week that saw the bourse lose some 8% of its value, on the back of global financial market turbulences caused by the downgrading of the US credit rating. All three key indices fell, to make for four down days out of five, in a session that saw losing stocks outnumber winning ones by a 6 to 1 ratio.

The main EGX30 index, measuring the performance of the heavyweight stocks, closed 1.49% lower, as it closed the day and the week at 4,592.

The main index, the preferred target of institutions and foreigners, has lost a huge 36% of its value in 2011.

The EGX70 of small and medium shares, the usual preferred target of Egyptian retail investors, also fell, as it lost 1.56%, finishing at the 578 mark for the trading week and it is now 20% down for the year.

Led by Egyptians' buying, the small and medium share index has outperformed the main index since the resumption of trading in the Egyptian Bourse on 23 March after a 55-day halt during the unrest that led to the peaceful 25 January revolution.

Thursday saw individual Egyptian investors continue their buying, while foreigners and institutions were net sellers again.

Finally, the price weighted index, the EGX100, which is now down nearly 26% for the year, finished down 1.56% and it now stands at 863 points.

Trading volume came in at just above US$ 70 million on Thursday.

Egyptian stocks, already suffering from a tense political situation, coupled with the holy month of Ramadan has been relatively quiet so far, are near their lowest levels since the eruption of the 25 January revolution that toppled long-time ruler Hosni Mubarak, whose trial will resume Monday.

Egyptian stocks are also near their lowest levels in almost two and a half years.

Pana 12/08/2011