CAIRO: Egyptian Exchange (EGX) indexes sharply declined Monday, for a total loss of 33 billion EGP (U.S. $4.74 billion) since the resignation of former Minister of Defense Field Marshall Abdel Fatah al-Sisi and the announcement of his bid for the presidency last Wednesday.
The benchmark index EGX30 slipped 3.55 percent to close at 7,805 points Monday, compared to 8,092 points on Sunday. The small and mid-cap index EGX70 dropped 3.64 percent to close at 595 points, and the broader EGX100 index also fell 3.3 percent to 1,041 points.
Market capitalization incurred 12.1 billion EGP losses, reaching 469.5 billion EGP, compared to 481.6 billion EGP yesterday.
“Profit taking amid the state of panic which controlled traders following Thursday’s sharp decline, behind Sunday and Monday’s weak performance and the ongoing loss,” advisor of technical analysis at Pioneers Securities Hossam Helmy told The Cairo Post Monday.
Helmy said he expects the EGX30 to offset its losses partially and move in sideways with a tendency to decline. EGX30 will target 8,300 points after failing to shoot above the former resistance level at 8,600 points, he added.
A number of analysts and traders aroused suspicions about the strike which hit the market Thursday, and urged competent authorities to immediately investigate the matter.
“What the market has witnessed since Thursday is normal, with investors tending to profit taking after Sisi’s announcement. The market has been up since June 30 and it is normal to decline,” head of the Egyptian Exchange Mohamed Omran told the Cairo Post Monday.
Omran ruled out possible manipulation in the market, denying reports about investigating the sharp decline with certain investment funds.
Egyptian and foreign traders’ net sell-offs reached 87.5 million EGP and 568.7 million EGP respectively, while Arabs’ net purchases registered 656.2 million EGP.
On Sunday, the benchmark index EGX30 slipped 1.93 percent to hit 8,092 points, compared to 8,251 points on Thursday. The small and mid-cap index EGX70 dropped 1.47 percent to close at 617 points, and the broader EGX100 index also fell 1.56 percent to 1,077 points. Market capitalizations incurred 5.8 billion EGP losses.