EGX Sets Third Biggest Drop Since Revolution, Losses EGP 29.4 Bln
During the black Sunday closing session, the Egyptian Exchange (EGX) has extended its early severe losses to eventually reach EGP 29.4 billion as the capital market has amounted to EGP 343.823 million, the third biggest fall since the outbreak of the 25th January revolution.
The EGX indices end in dark red.
The main index, EGX30 dived by 9.59% to close at 4917.73 p, recording the second biggest drop since the outbreak of the revolution.
EGX20 pushed down by 9.47% to end at 5634.79 p.
Meanwhile, the mid- and small-cap index, the EGX70 sank by 8.14% to conclude at 441.76 pts. Price index EGX100 dipped by 8.71% to finish at 736.49 p.
Traded volume reached 122.316 million securities worth EGP 328.462 million, exchanged 15.338 thousand transactions.
This was after trading in 185 listed securities; 171 declined, 2 advanced; while 12 keeping their previous levels.
The EGX administration has decided earlier Sunday to halt the EGX trading for half an hour till 11:01 a.m. (09:01 GMT) as the indices’ opening losses exceeded 5%.
After a 30-minute suspension, the Egyptian Exchange (EGX) has resumed trading reporting losses of EGP 25 billion as the capital market has amounted to EGP 347.991 billion, according to data compiled by Amwal Al Ghad at 11:46 a.m. Cairo time (09:46 GMT).
EGX’s closing losses were driven by the local investors’ selling pressures.
Egyptians were net sellers seizing 72.06% of the total markets, with a net equity of EGP 86.739 million excluding the deals.
On the other hand, the non-Arab Foreigners and Arabs were net buyers seizing 9.78% and 18.17% respectively, of the total markets, with a net equity of EGP 41.275 million and EGP 45.463 million excluding the deals.
Mohamed Gaballah, Finance and operation Manager at Arab Finance Brokerage company, has attributed the Egyptian Exchange’s Sunday sharp decline to the domestic division over President Mohamed Morsi’s new constitutional declaration issued last Thursday.
Gaballah further told CBC local channel that Morsi’s constitutional decree has sharply divided the country into supporters and opponents triggering controversies among political parties and the general public which in return have heighten the political tensions.
Accordingly, the investors have been in a state of panic and fear recalling the EGX’s drastic decline before the outbreak of the 25th January revolution, he added.
Gaballah noted that the Egyptian investors are more worried than Arabs and non-Arab foreigners.
