Egypt Bourse Holds Emergency Meeting over Stock Recent Slump

Egypt’s bourse management is holding today an emergency meeting with heads of brokerage firms and funds, to review reasons behind the recent massive decline in equities.

Dr. Mohamed Omran, Chairman of the Egyptian Exchange (EGX) said he will hold an emergency meeting with managers of brokerage firms and funds operating in the local exchange, both governmental and private, to look into the market conditions and reasons behind the recent steep decline in equities.

The top official invited fund managers to discuss reasons for the selling tendency of some funds over the recent period that drove stocks and indexes lower.

The size of the 42 investment funds operating in EGX amounts to nearly EGP 7 billion.

There is no clear justification for the drop in equities, as profit taking is seen as normal following the record leaps recorded by stocks in the last days, according to Omran.

Omran also indicated that the financial performance of listed companies is solid, adding that he addressed more than 50 companies that slid on the bourse asking them to show their financial positions and P/E ratios to investors in order to help them take the right decisions.

The bourse fell more than 10% since Thursday’s session and market capitalization lost more than EGP 40 billion.