IMF Visit Delay, Cash-Ins Behind EGX Indices Slide: Experts

The Egyptian Exchange (EGX) indices steeply declined during Monday’s closing session to record the biggest daily loss in three months, pressured down by foreign and national sales, as well as severe cash-ins, according to capital-market experts.

Benchmark index EGX30 fell 2.95%, or 171.75 pts to 5650; thus extending its losing streak to the third successive day and recording its largest daily decline since July 9, 2012. Similarly, EGX70 pulled down 4%, or 22.56 pts to 541.91 pts, thus recording its biggest daily loss in nine and a half months. The broader EGX100 was behind 3.5%, or 32.49 pts to 892.96 pts.

Marian Azmy, capital-market expert, attributed this slide to correction that followed the strong rally from 4500 points to 6000 pts.

According to the expert, profit taking may push EGX30 lower to 5500-5400 over the coming period, after which the measure may stall at such levels and then rebound to above 6500 before year-end.

For his part, Moustafa Badrah, capital-market expert, said that Egyptians and Non-Arab foreigners tended towards selling, while Arab buying failed to stop the bleeding.

Egyptians and Non-Arab foreigners were net sellers of shares worth EGP 36.6 million and EGP 4.61 million respectively. Meanwhile, Arab investors recorded a buy/sell difference of EGP 41.230 million.

Source: Mubasher