Egypt’s Indices Back To 10-Month Low Levels Amid Emerging Market Exclusion Woes

Egypt’s stock market has incurred early massive losses of EGP 5 billion during the opening session of Wednesday.

This comes in the awake of the latest report released by the Index compiler Morgan Stanley Capital International Inc. (MSCI) in which bears a potential review of the MSCI Egypt Index for potential reclassification to frontier markets and excluding it from the emerging-market index.

Consequently, the Egyptian Exchange’s indices were wavering to dark red notes back to the 10-month low levels.

Benchmark EGX30 dived by 2.54% to 4725.46 p. EGX20 also sank by 2.98% to 5191.61 p.

On the other hand, the mid- and small-cap index, the EGX70 pushed down by 1.62% to 363.34 p.  Price index EGX100 dropped  by 1.64% to 641.5 p.

The capital market has amounted to EGP 322.775 billion, according to data compiled by Amwal Al Ghad English at 11:22 a.m. Cairo time (09:22 GMT) during the opening session of Wednesday.

Trading Volumes & Values:

The trading volume has recorded 21.309 million securities worth EGP 55.582 million, exchanged through 2456 transactions during Wednesday opening. 

Also during the opening session, 115 listed securities have been traded in; 83 declined, one solely advanced; while 31 steadied.

Investors’ Activities:

Egyptian investors were net sellers triggering EGX’s opening losses seizing 65.32% of the total markets, with a net equity of EGP 7.759 million excluding the deals.

Meanwhile,  the non-Arab foreigners and Arabs were net buyers seizing 17.75% and 16.92% respectively, of the total markets, with a net equity of EGP 4.765 million and EGP 2.994 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.

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