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Sunday, 11 September 2011

Egypt, Israel Stocks Lead Mideast Decline on Embassy Attack, Global Slump - Bloomberg

Egypt’s benchmark stock index dropped the most in three weeks and Israeli shares retreated as tensions between the Middle Eastern states intensified after protesters attacked the Israeli embassy in Cairo.

Orascom Construction Industries (OCIC), Egypt’s biggest publicly traded builder, lost 1.6 percent. In Tel Aviv, Ampal-American Israel (AMPL) Corp., which has a stake in the company that supplies gas from Egypt to Israel, fell to the lowest level on record. The EGX 30 Index (EGX30) declined 1.1 percent, the most since Aug. 21, to 4,703.54 at 1:11 p.m. in Cairo. The TA-25 Index dropped 3.1 percent, the biggest intraday decline since Sept. 6. In the Persian Gulf, the Bloomberg GCC 200 Index (BGCC200) declined 0.2 percent.

“Spontaneous street violence over the weekend is a cause for concern and is undoubtedly weighing on the EGX,” said Julian Bruce, equity sales head at EFG-Hermes Holding SAE in Dubai. “Broader implications regarding future relations with Israel also have to be considered and in no way can that be construed positively.”