Egypt stocks shed $1.2bn in week on currency devaluation remarks

Egypt’s stock market has incurred losses in a week amounting to 9.3 billion Egyptian pounds (US$1.2 billion) following investment minister’s remarks on ‘inevitable’ depreciation of the local currency.

“Depreciation of the Egyptian pound is no longer a matter of choice under the current local and international economic circumstances,” Investment Minister Ashraf Salman said speaking at the Euromoney conference that took place in Cairo on 7 September.

Indices

The country’s main stock index, EGX30 tumbled 3.5 percent to close at 7039.3 points, versus 7295.96 points at the end of a week earlier.

The main gauge index registered its highest point on Sunday closing at 7273.92 points, whereas its lowest point recorded on Tuesday at 6924.05 points.
In addition, the mid- and small-cap index, the EGX70 pushed down 3 percent in a week closing at 382.11points during Thursday’s session, compared to 394.85 points at the end of a week earlier.

The price index, EGX100 also dropped 2.8 percent finishing at 822.87 points during Thursday’s session, from 846.3 points at the end of a week earlier.

Market Cap
Market capitalisation ended at 441.057 billion pounds last Thursday, compared to 450.376 billion pounds at the end of a week earlier.

Turnovers lower
Through last week, the trading volume hit around 902.9 million securities, compared to 984.7 million. For the traded value, it reached 4.6 billion pounds against 5.7 billion pounds a week earlier.

Minister’s remarks

Salman further indicated last Monday that the deterioration of the value of the country’s foreign reserves will be limited by devaluating the Egyptian pound against the US dollar.

Meanwhile, on the same day, the Central Bank of Egypt (CBE) announced that foreign reserves have fallen by $500 million in August to reach $18.09 billion, compared to $18.55 billion in the preceding month.