Polarized Political Scene Drags Egypt Stocks to Lose EGP1 bln – Midday
As the current political scene is more polarized than ever before ahead forming a planned interim post-Morsi government, Egypt’s stock market has lost EGP 1.04 billion besides the main index solely fell during the midday of Sunday.
The interim president is tasked with forming a coalition government that will prepare the country for parliamentary and presidential elections following the ouster of president Mohamed Morsi.
Under the military-backed road map, a post-Morsi government shall be devised after holding a meeting of civilian, political and religious leaders. Plans would be expedited for new parliamentary and presidential elections under an interim government.
There were some news announced on Saturday about naming opposition leader Dr. Mohamed ElBaradei as the new interim prime minister, but later a presidential spokesman denied by saying the PM office is still vacant and Dr. ElBaradei is among other nominees.
The prospect of calmer streets has sent shares up more than 12% in the last week. The rally can only last if the new regime acts swiftly to address the country’s twin deficits. Aid from the Gulf could help, but only serious reforms will win back foreign investors.
The Egyptian Exchange’s indices were wavering on the green notes; expect for the main index EGX 30.
Benchmark EGX30 fell by 0.50% to 5307.62 p; while EGX20 rose by 0.64% to 6041.3 p.
On the other hand, the mid- and small-cap index, the EGX70 inched up by 0.49% to 424.71 p. Price index EGX100 went up by 0.04% to 729.22 p.
The capital market has reached EGP 354.384 billion during the midday session of Sunday, according to data compiled by Amwal Al Ghad English at 12:48 p.m. Cairo time (10:48 GMT).
Trading Volumes & Values
The trading volume has recorded 127.065 million securities worth EGP 351.603 million, exchanged through 17.117 thousand transactions during Sunday midday.
Also during the midday session, 153 listed securities have been traded in; 50 declined, 84 advanced; while 19 steadied.
Investors’ Activities
Local and the non-Arab foreign investors were net sellers seizing 79.31% and 7.69% respectively, of the total markets, with a net equity of EGP 17.170 million and EGP 18.577 million, excluding the deals.
Meanwhile, Arabs were net buyers seizing 13% of the total markets, with a net equity of EGP 35.748 million excluding the deals.
