Egypt’s Benchmark Dives 5.17%, Specter Of Stock Market Crash Looms

Egypt’s stock market losses for Wednesday have totaled at EGP 13.1 billion driven by the potential exclusion from the emerging markets and jitters about 30 June protests which seek to topple the Egyptian president Mohamed Morsi.

Egyptian Exchange’s losses on Wednesday raised the terrible specter of the stock market crash during January uprising in 2011.

Accordingly, the Egyptian Exchange’s indices were backed to uprising levels.

Egypt’s benchmark index EGX30 dived 5.17% to close at 4598.1 p; while the EGX20, it sank by 6.19% to end at 5019.5 p.

Meanwhile, the mid- and small-cap index, the EGX70 fell by 4.57% to conclude at 352.46 p.  The price index EGX100 also pushed down by 4.45% to finish at 623.17 p.

The capital market has closed at EGP 314.644 billion on Wednesday.

Traded Volumes & Trades

Through the closing session of Wednesday, the trading volume reached 102.526 million securities. For the traded value, it reached EGP 330.779 million, exchanged through 15.811 thousand transactions.

Also during the closing session of Wednesday, 169 listed securities have been traded in; 143 declined, 18 keeping their previous levels; while 8  only advanced.

Investors’ Activity

Egyptians’ selling pressures triggered EGX’s closing session losses as they were net sellers seizing 63.76% of the total markets, with a net equity of EGP 98.204 million, excluding the deals.

Meanwhile, the non-Arab foreigners and Arabs were net buyers seizing 22.77% and 13.47% respectively, of the total markets, with a net equity of EGP 69.959 million and 28.245 million excluding the deals.

MSCI: Egypt’s Potential Exclusion From Emerging Markets

Equity index provider MSCI on Tuesday said it may be forced to launch a public consultation with the investment community on a potential exclusion of the MSCI Egypt Index from the MSCI Emerging Markets Index were the situation on the Egyptian foreign exchange market to worsen.

“MSCI may be forced to launch a public consultation with the investment community on a potential exclusion of the MSCI Egypt Index from the MSCI Emerging Markets Index were the situation on the Egyptian foreign exchange market to worsen and result in the inability of international investors to repatriate their funds,” MSCI said.

The situation “could trigger a review of the MSCI Egypt Index for potential reclassification to frontier markets,” the index provider said.

Jitters About 30 June Protest

The investors in Egypt are on full alert to the calls for the June 30th protests that seek to topple the country’s president Mohamed Morsi.

A group of peaceful Egyptian youth launched a campaign entitled “Tamarod” or “Rebel” last April in order to overthrow Morsi, who came to the office in 2012. Those youth, who launched the campaign, also called for massive demonstrations in 30th June 2013 across Egypt.

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