Syrian Concerns Drag Egypt Shares to Lose EGP4.7 bln at Open

By Yomna Yasser On Aug 28, 2013

Triggered by a potential military action against Syria, Egypt’s stocks opened much lower for the second day in a row on Wednesday incurring losses of EGP 4.7 billion. The benchmark fell below 5230 pts on early Wednesday.

The Egyptian Exchange’s indices were wavering in dark red notes during the opening session of Wednesday.

Benchmark EGX30 sank by 2.09% to 5226.15 p; while EGX20 dived by 2.27% to 6046.25 p.

On the other hand, the mid- and small-cap index, the EGX70 pushed down by 2.09% to 434.39 p. Price index EGX100 sagged by 1.90% to 737.34 p.

The capital market has reached EGP 352.201 billion during the opening session of Wednesday, according to data compiled by Amwal Al Ghad English at 11:09 a.m. Cairo time (09:09 GMT).

Trading Volumes & Values

The trading volume has recorded 31.115 million securities worth EGP 51.075 million, exchanged through 3036 transactions during Wednesday opening.

Also during the opening session, 127 listed securities have been traded in; 102 fell, 3 advanced; while 22 keeping their previous levels.

Investors’ Activity

Egyptians were net selling dragging the EGX’s early losses. The local net sellers have seized 92.12% of the total market, with a net equity of EGP 2.748 million, excluding the deals.

Meanwhile, the non-Arab foreigners and Arabs were net buyers seizing 3.38% and 4.5% respectively, of the total market, with net equities of EGP 1.043 million and EGP 1.705 million, excluding the deals.

Potential Military Intervention in Syria

The United States and its allies geared up for a probable military strike against Syria that could come within days and would be the most aggressive action by Western powers in the Middle Eastern nation’s two-and-a-half-year civil war.

Western envoys have told the Syrian opposition to expect a military response soon against President Bashar al-Assad’s forces as punishment for a chemical weapons attack last week, according to sources who attended a meeting with the rebel Syrian National Coalition in Istanbul.