In November: EGX Losses EGP 54.5 Bln, Benchmark Below 4850 Pts
During last November, the Egyptian Exchange (EGX) has posted losses of EGP 54.5 billion as the capital market fell by 14% to EGP 339.351 during the closing session of November 29th, compared to EGP 393.870 billion during the closing session of October 31st. During November, the country had witnessed a severe domestic division due to the President’s constitutional declaration expanding his powers.
The Egyptian Exchange’s benchmark – EGX30 sank by 15.59% closing at the level of 4808 pts.
The mid- and small-cap index, the EGX70 dived by 19.97% ending at the level of 429 pts. Price Index EGX100 retreated by 18.75% closing at the level of 714 pts.
Dr. Mohamed Omran, the EGX Chairman, said the bourse is an accurate reflection of the country’s economic and political situation. He added that some certain decrees have triggered controversies among political parties and the general public which in return have heighten the political tensions and reversely affected the bourse’s performance during the month.
EGX Pays High Price For Lacking Economic Identity: Experts
A number of capital market experts asserted that the country’s economic system and bourse are still in pursuit of a clear identity since the outbreak of January 25th revolution. This comes amidst the current political situation and the domestic division towards a number of decrees.
The experts and traders expected that the market will continue its fluctuated performance within the upcoming period until the new parliament is formed so as to contribute to restoring its economic identity.
Mohamed El-Sahragty, Managing Director at Solidaire Securities Brokerage, said the escalating political incidents have had major impact on the EGX indices’ trends as well as the economic system in overall.
Hamdy Rashad, the Chairman of El-Rashad Asset and Portfolio Management, has emphasized on the importance of restoring the political stability so that the EGX would regain its balance. Rashad further noted that since the outbreak of the revolution, the market trading still witness unsteady performance driven by the subsequent political incidents.
Through November, the traded volume reached around 2.624 million securities worth EGP 13.2 billion , exchanged through 437 thousand transactions. On the contrary, October had witnessed traded volume reached 3.310 million securities worth EGP 14.7 billion, exchanged through 589 thousand transactions.
For the Egyptian bourse for the small and medium enterprises (SMEs) – NILEX, it has traded volume through October of 9.7 million securities worth EGP 17.8 million, exchanged through 3.395 transactions.
Investors’ Activity:
Local investors led the market activity through November, seizing 82.14% of the total market; while Arabs and the non-Arab foreigners seized 4.71% and 13.15%, respectively of the total market after excluding the deals.
The non-Arab foreigners and Arabs were net buyers in November, with a net equity of EGP 3.99 million and EGP 201.50 million respectively, excluding the deals.
It is worth noting that since the beginning of 2012, the Arabs and the non-Arab foreigners’ selling net equities had hit EGP 3.777 million and EGP 1.493 million respectively, after excluding the deals.
Institutions seized in November 58.78% of the total market; while individuals seized 41.22%. Institutions were net buyers with a net equity of EGP 117.48 million, after excluding the deals.
