EGX 30 Ends Below 5200 Pts On Pending OCI, Hermes & IMF Deals
The foreign selling pressures have driven the Egyptian Exchange (EGX) to incur losses for the second day in a raw. The EGX incurred closing losses of EGP 1.2 billion on Monday.
The market is in full alert apprehension awaiting to a number of official announcements about; a final accord on the US$ 4.8 million loan with the International Monetary Fund, the completion of the long-standing Hermes-QInvest deal besides a final settlement agreement to end the 9-month tax disputes between Orascom Construction Industries (OCIC.CA) and tax authorities over EGP 14 billion evasion claims.
The capital market has reached to EGP 354.972 billion during Monday’s closing session.
The EGX indices ended Monday in red notes.
Egypt’s benchmark index EGX30 tumbled by 0.63% to close at 5198.91 p; while the EGX20, it also inched down by 0.78% to end at 6003.09 p.
Meanwhile, the mid- and small-cap index, the EGX70 dipped by 0.03% to conclude at 449.66 p. Price index EGX100 fell by 0.20% to finish 747.81 p.
During Monday’s closing, the trading volume hit 38.177 million securities, less than Sunday’s 47.176 million securities, representing a decrease of 8.999 thousand securities. For the traded value, it reached EGP 189.894 million, exchanged through 9.620 thousand transactions.
This was after trading in 165 listed securities; 92 declined, 36 advanced; while 37 keeping their previous levels.
Arabs and the non-Arab foreigners’ selling pressures have driven EGX’s closing losses as they were net sellers seizing 2.88% and 22.2% respectively, of the total markets, with a net equity of EGP 1.117 million and EGP 32.833 million excluding the deals.
Meanwhile, Egyptians were net buyers seizing 74.92% of the total markets, with a net equity of EGP 33.950 million, excluding the deals.
Egypt, IMF To Resume Talks Via Video Conference
Egypt will resume negotiations with the International Monetary Fund (IMF) over the long-awaited US$ 4.8 billion loan through video conference, the Minister of Finance, El-Morsi El-Sayed Hegazy, said.
He expected signing the definitive loan agreement within few weeks, noting that the IMF team will visit Egypt after reaching an agreement.
The Finance Minister will hold a meeting with Shura Council’s Finance and Economic Affairs Committee to discuss the results of the negotiations.
After securing the recent aids, the financing deficit dropped to US$ 14 billion, down from US$ 19 billion, he revealed.
Hermes-Qinvest Deal Seen Before 3rd May, Stocks Surged
Egypt’s Investment Minister, Osama Saleh, said in a statement on Saturday some measures are being taken in EFG-Hermes and Qlnvest strategic alliance seeking finalize the deal by the end of the current week.
The Minister added that it is scheduled to announce the final decision as regard to the long-standing takeover deal before the partnership deadline between the two firms that will be ended in the coming May.
