Egypt’s stocks traded lower on Sunday weighed by non-Arab foreign selling pressures.
Main index, EGX30 sank 0.97 percent, to 8052.23 points, hitting a three-week low after the Minister of Supply Khaled Hanafi resigned amid the highest-profile wheat corruption case since President Abdel Fattah al-Sisi came to power in 2014.
A parliamentary fact-finding commission’s report into corruption in Egypt’s wheat industry found the government played a key role in “wasting public funds” in its costly food subsidy programme.
The controversy could destabilise the cabinet or distract its attention from economic reforms needed to secure a $12 billion loan from the International Monetary Fund. It could also complicate an international bond issue which the country plans in late September or early October, according to Reuters.
Other indices; EGX50 EWI index also edged down 1.21 percent, to 1366.12 points; EGX20 dived by 1.50 percent, to 8103.19 points.
Mid- and small-cap index EGX70 fell 1.18 percent, to 358.66 points. Price index, EGX100 dropped 0.95 percent, to 803.3 points.
Market capitalisation incurred losses worth 3.6 billion Egyptian pounds ($405.4 million), to record 408.615 billion pounds during the closing session of Sunday.
The bourse’s trading volume reached 79.145 million securities, with turnovers, closing at 358.939 million pounds, exchanged through 12,125 transactions.
Also during the closing session, 166 listed securities have been traded in, 95 declined, 28 advanced; while 36 kept their previous levels.
Non-Arab foreign investors were net sellers capturing 13.07 percent of the total market, with a net equity of 57.219 million pounds, excluding the deals.
On the contrary, local and Arab investors were net buyers controlling 84.06 and 2.87 percent respectively of the total markets, with a net equity of 52.019 million pounds and 5.200 million pounds, respectively, excluding the deals.