EGX Closing Gains Hit EGP 9 Bln Amid Controversial Decree Cancellation

As Egyptian President Mohamed Morsi early Sunday annulled most of an extraordinary Nov. 22 controversial decree, the Egyptian Exchange (EGX) has extended its opening gains to eventually reach EGP 9.3 billion during Sunday closing session as the capital market has amounted to EGP 350.579 billion.

The indices closed in green.

The main index, EGX30 jumped by 4.41% to end at 5051.96 p. EGX20 edged up by 4.02% to close at 5774.62 p.

Meanwhile, the mid- and small-cap index, the EGX70 rose by 2.57% to conclude at 438.61 pts.  Price index EGX100 inched higher by 3.40% to finish at 740.57 p.

Egyptian President Mohamed Morsi early Sunday annulled most of an extraordinary Nov. 22 decree that gave him near-absolute power and has plunged this nation into a deeply divisive political crisis.

Traded volume reached 74.213 million securities worth EGP 222.760 million, exchanged 14.754  thousand transactions.

This was after trading in 164 listed securities; 22 declined, 129 advanced; while 13 keeping their previous levels.

The non non-Arab foreigners buying transactions have backed EGX’s opening gains as they were net buyers seizing 23.12% of the total markets, with a net equity of EGP 39.853 million excluding the deals.

On the other hand, Egyptians and Arabs were net sellers 69.13% and 7.75% respectively, of the total markets, with a net equity of EGP 17.941 million and EGP 21.911 million excluding the deals.

The decree, which Morsi had said was necessary to move Egypt’s democratic transition forward, will be replaced by a modified version of the original declaration. But the most controversial article, which placed all of Morsi’s actions beyond judicial review, is gone, said Mohammad Salim al-Awa, spokesman for a national political dialogue held Saturday.

That satisfies a key demand of opposition leaders, though the article has already served its purpose for Morsi. He had used it to protect an Islamist-dominated constitution-writing panel from dissolution by Egypt’s highest court, enabling the panel to pass a controversial draft charter. And a Dec. 15 referendum that opposition forces had wanted canceled will go ahead as planned, Awa said.

All but a handful of opposition figures had boycotted the national dialogue, saying that if the referendum was going ahead, there was nothing to talk about.