Egyptian investment bank Pioneers Holding said on Tuesday it had signed an agreement to buy 50 per cent of Egyptian Securities Brokerage, but declined to say how much it would pay for the stake.

The company said in a statement issued through the Egyptian stock exchange that procedures were underway to carry out the deal.

Investor Relations Director Ayman Taha declined to give further details including the value of the deal, adding that the contract was still 'preliminary'. He said details would be announced in several days.

Shares in Pioneers plunged 26.61 per cent to 8 Egyptian pounds ($1.46), while Egypt's benchmark CASE 30 index was 16.63 percent lower by 1121GMT in the first trading day following a week-long closure for Eid holidays.

Egypt's stock market regulator said last week that it had penalised two brokerages for manipulating shares of Pioneers Holding.

Sources at the regulator said in comments carried by Egypt's official news agency Mena said that Pioneers Securities and Prizma Securities, both subsidiaries of Pioneers Holding, had violated trading rules and manipulated shares of their holding company.

Pioneers Holding, which operates in Egypt, Saudi Arabia, the UAE and Syria, made its debut on Egypt's stock exchange in June after the company raised 850 million pounds in a private placement.-Reuters