EGX Falls 1.49%, Ends Below 5370 Pts On Local Selling Pressures

The Egyptian Exchange (EGX) has turned its opening gains into losses of EGP 3.7 billion during Sunday’s closing session. The capital market has amounted to EGP 369.171 billion.

The main index, EGX30 fell by 1.49% to end at 5362.16 p. EGX20 dropped by 1.57% to close at 6194.15 p.

Meanwhile, the mid- and small-cap index, the EGX70 sank by 2.67% to conclude at 474.67 pts.  Price index EGX100 pushed down by 2.12% to finish at 792.79 p.

Traded volume reached 152.585 million securities worth EGP 443.492 million, exchanged 29.596 thousand transactions.

This was after trading in 176 listed securities; 142 declined, 18 advanced; while 16 keeping their previous levels.

The EGX’s closing losses were driven by local selling pressures as Egyptian investors were net sellers seizing 90% of the total markets, with a net equity of EGP 26.475 million excluding the deals.

Meanwhile, Arabs and the non-Arab foreigners were net buyers seizing 5.8% and 4.2% respectively, of the total markets, with a net equity of EGP 2.332 million and EGP 24.142 million excluding the deals.

Egypt’s Islamist-backed constitution headed toward likely approval in a final round of voting on Saturday, but the deep divisions it has opened up threaten to fuel continued turmoil.

Passage is a victory for Islamist President Mohammed Morsi, but a costly one. The bruising battle over the past month stripped away hope that the long-awaited constitution would bring a national consensus on the path Egypt will take after shedding its autocratic ruler Hosni Mubarak nearly two years ago.

Meanwhile, in a sign of disarray in Morsi’s administration, his deputy and – possibly – the Central Bank governor resigned during the latest voting. Vice President Mahmoud Mekki’s resignation had been expected since his post is eliminated under the new constitution. But its hasty submission even before the charter has been sealed and his own resignation statement suggested it was linked to Morsi’s policies.