Egypt’s stocks end bearish with losses of $744 million

Egypt’s stock market concluded lower Tuesday with losses estimated at 5.833 billion (US$744 million) brought down in part by the news of the National Bank of Egypt’s withdrawal from the acquisition deal of investment bank CI Capital.

The market capitalisation has recorded 392.739 billion pounds during the closing session of Tuesday.

Mohamed Naggar, the head of technical analysis in Marwa for brokerage and stock exchange told Aswat Masriya the market was brought down in part by the news of the National Bank of Egypt’s withdrawal from the acquisition deal of investment bank CI Capital.

The National Bank of Egypt is the country’s biggest state-owned bank, while CI Capital is owned by the private sector bank CIB, which describes CI Capital as its “investment bank arm”.

The National Bank of Egypt quit the deal on Monday in favour of Orascom Telecom, Media and Technology’s (OTMT), whose executive chairman is telecom magnate Naguib Sawiris. The withdrawal came over a disagreement on the period of time in which CI Capital was to be legally and financially inspected.

Indices

Egypt’s benchmark index, EGX30 plunge 2.76 percent to 6004.41 points.

The newly-launched EGX50 EWI index went down 1.53 percent to 1081.8 points.

EGX20 declined 2.44 percent to 5998.17 points.

In addition, the mid- and small-cap index EGX70 decreased 1 percent to 349.01 points. The price index, EGX100 sagged  1.08 percent 702.31 points.

Turnovers low

On Tuesday, the bourse’s trading volume hit 207.238 million securities, with turnovers closed at 1.559 billion pounds, exchanged through 22,208 thousand transactions.

Also during the closing session,165 listed securities have been traded in; 95 declined, 25 advanced; while 36 kept their previous levels.

Investors’ Activities

Local and foreign investors were net buyers Tuesday seizing 94.02 percent and 2.6 percent respectively of the total markets, with a net equity of 17.466 million pounds and 7.561 million pounds, respectively, excluding the deals.

On the contrary, the foreign investors were net sellers getting 3.38 percent of the total market, with a net equity of  25.027 million pounds, excluding the deals.