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Egypt stabilizes, Saudi edges down after oil plunge

Egypt’s stock market stabilized early on Tuesday after falling sharply in recent days, while Saudi Arabian shares edged down as oil prices plunged

Published: Updated:

Egypt’s stock market stabilized early on Tuesday after falling sharply in recent days, while Saudi Arabian shares edged down as oil prices plunged.

The Cairo index, which has headed lower for over a month and tumbled 4.2 percent on Monday, rose 0.2 percent to 7,889 points on Tuesday.

Property firm Emaar Misr

Palm Hills Development, another major property stock which had been falling sharply, rose 1.2 percent.

Egyptian shares showed no signs of beginning an extended rebound. On Monday, the index broke major technical support between 8,125 and 8,261 points, the December and May lows.

The market has been hit by foreign exchange and energy shortages, bloody clashes with militants in the Sinai, and a central bank decision to let the Egyptian pound resume depreciating.

The Saudi index fell 0.2 percent as petrochemical firm Saudi Basic Industries lost 1.4 percent.

Bent crude oil dived more than 6 percent on Monday to around $56 a barrel, pressured by Greece’s debt crisis and volatility in China’s stock markets. Crude recovered to around $57 on Tuesday.

Saudi Electricity Co (SEC) rose 1.4 percent after Sadara Basic Services said its parent firm had signed a 14.13 billion-riyal ($3.77 billion) deal with SEC for power at its planned chemicals complex in Jubail Industrial City.