The Egyptian government indefinitely delayed an auction for its 24 percent stake in Egyptian Resorts that had been scheduled for Tuesday, an official said.

The official at state-owned National Bank of Egypt, who declined to give his name, gave no reason for the move.

Egyptian Resorts chairman Ibrahim Kamel said he was travelling and had no knowledge of the delay. Other officials could not immediately be reached for comment.

Shares of Egyptian Resorts had rallied ahead of the auction in anticipation the shares could sell for more than their market price, but were down 3.7 percent to 11.47 pounds before the announcement of the delay.

Rumours that bids would not exceed 11 pounds per share had driven the stock down, some traders said. The stock may have also fallen as news the auction would be postponed leaked into the market, said Mohamed Ashmawy, trader at CIBC brokerage in Cairo.

The sale, part of plans to privatise dozens of state-owned companies and public stakes in joint ventures, could fetch 1.92 billion Egyptian pounds ($344.4 million) based on Tuesday's closing price. - Reuters