Middle East markets: Egyptian shares slump

Egyptian shares slumped to a two-month low on Tuesday, declining for a second day on concerns anti-government protests would escalate, while fears of a wider eurozone debt crisis weighed on Gulf markets. More than 1,000 Egyptians extended a protest in central Cairo to a fifth day on Tuesday after dismissing the prime minister's pledge to reshuffle the cabinet as falling short of demands for swifter reforms.
"It will continue to weigh on the market, which is totally dependant on what's going on in the street," said Hashem Ghoneim of Pyramids Capital. "If the protests escalate in Tahrir (Square) the market will be pressured to go down even more." Cairo's benchmark index lost 2.8 percent to end at its lowest close since May 10.
Commercial International Bank, the most active stock, fell 4 percent and the exchange suspended 22 shares from trade during the day after their declines surpassed 5 percent. Only six companies on the index gained, including two dollar-denominated stocks, Maridive and Oil Services, which added 2.6 percent, and Egypt Kuwait Holding, which rose 1.7 percent.
Investors dumped the euro and stocks for a third day on Tuesday as concern mounted that the eurozone debt crisis was spreading to Italy and Spain. Global concerns overshadowed strong bank results in Saudi Arabia, dragging the kingdom's index 1.2 percent lower to its lowest close since June 25.
Saudi Basic Industries Corp, the world's biggest petrochemical firm by market value, fell 1.2 percent. The biggest listed Saudi lender, Al-Rajhi Bank, shed 1 percent despite posting a 3.6 percent rise in quarterly earnings. Saudi Hollandi Bank bucked the trend, gaining 1 percent after reporting a 5.1 percent rise in quarterly profit, beating forecasts.
Dubai shares declined for a second day, with the global sentiment doing little to help sentiment, and Qatar's market also ended lower. Dubai's index declined 1 percent, hitting a fresh July low. Most stocks fell, with Emaar Properties down 2 percent. Analysts polled by Reuters estimate the developer to post a 55.3 percent drop in quarterly net profit. Qatar's index fell 0.9 percent to its lowest close since June 30.