Orascom Telecom tumbles, Egypt index at 9-mth low

CAIRO, July 29 (Reuters) – Orascom Telecom (OT) posted its sharpest daily drop in at least a year on Tuesday, dragging Egypt's main index to a nine-month low, as some investors worried about growth in OT's Canada venture.

Shares of the largest Arab mobile operator by subscribers tumbled 7.19 percent to 54.61 pounds ($10.29). Egypt's benchmark CASE 30 index retreated 3.58 percent to 9,191.81 points, its lowest close since November 8, 2007.

The mobile operator said last week it was part of a consortium that won a license for a wireless spectrum in Canada.

"Valuations are different when you go into developed countries," said Ally Allouba, head of sales and trading at Shuaa Securities in Egypt. "There is uncertainty over the short-term direction of the company."

Orascom, which has operations in developing markets including Algeria, Pakistan, and Egypt, says it favours countries with large populations and low penetration rates.

Drops in European and U.S. stocks on Monday also prompted selling in Egypt, said Mohamed Radwan, trader at Pharos Securities.

"There is some institutional selling, and institutions that have positions in Egypt have stakes in Orascom Telecom," he said.

Shares of El Sewedy Cables, Egypt's largest maker of electrical equipment, tumbled 7.29 percent to 144 pounds, their first decline in five sessions. The stock, up 30 percent this year to Monday's close, had surged nearly five percent on July 27.

"The stock is coming off a nice rally as some people take profits," Radwan said.