The Egyptian Exchange (EGX) has tripped its early losses to eventually end Wednesday’s session with losses of EGP 3.6 billion driven by foreign investors’ concerns over the Egypt court’s ruling on the freezing assets decree.
The Arab investors are in full alert awaiting the Cairo Criminal Court’s ruling in the Egyptian Prosecutor General’s decree on freezing the assets of 21 Egyptian and Arab businessmen following investigations related to stock manipulation during the sale of the National Bank of Egypt to the National Bank of Kuwait (NBK) in 2007.
The capital market has reached to EGP 358.518 billion during Wednesday’s closing session.
The EGX indices ended Wednesday in red notes.
Egypt’s benchmark index EGX30 pushed down by 1.55% to close at 5161.52 p; while EGX20 sank by 1.62% to end at 6064.7 p.
Meanwhile, the mid- and small-cap index, the EGX70 tumbled by 1.08% to conclude at 449.96 pts. Price index EGX100 went down by 1.24% to finish at 749.75 p.
During Wednesday’s closing, the trading volume hit 61.804 million securities, less than Tuesday’s 98.344 million securities, representing a decline of 36.54 thousand securities. For the traded value, it reached EGP 221.732 million, exchanged 13.832 thousand transactions.
This was after trading in 166 listed securities; 119 declined, 20 advanced; while 27 keeping their previous levels.
The non-Arab foreigners and Arabs’ selling pressures have driven EGX’s loses as they were net sellers seizing 33.48% and 6.6% respectively, of the total markets, with a net equity of EGP 11.883 million and EGP 2.821 million excluding the deals.
Meanwhile, Egyptians were net buyers seizing 59.92% of the total markets, with a net equity of EGP 14.705 million excluding the deals.
Egypt’s Prosecutor General Controversial Decree:
A group of Egyptian businessmen and foreign investors said Egypt’s recent decision to freeze an estimated EGP 10 billion and assets belonging to 21 businessmen, including 5 Saudis, will gravely affect Arab and foreign investments in Egypt.
Egyptian Prosecutor General had ordered freezing the assets owned by 21 businessmen including 5 Saudis.
The five Saudi businessmen have been identified as Sulaiman Abanami – the most prominent Saudi investor in the EGX; Hasan Abdulrahaman Al-Sharbatli – Owner of City Stars Complex in Cairo; Gharamallah Al-Zahrani, Muiyadh Al-Zahrani, and Aidarus Al-Isai.
Board Chairman of Jarir Company Mohammed Al-Aqil, who is one of investors in the Egyptian stock market, said the announcement of the issue is not in the interest of the Egyptian economy and will have a negative impact on investors. It will especially affect investors who are above any skepticism and will never carry out such transactions.