EGX watch: EGX30 up 1.4% amid signs of recovery
Egyptian stock exchange - YOUM7 (Archive)
By YASMINE SAMRA

CAIRO: Egyptian Exchange (EGX) indexes showed mixed performance Thursday, amid signs of recovery from the heavy losses since Field Marshal Abdel Fatah al-Sisi announced his bid for presidency last Wednesday.

The benchmark EGX30 edged up 1.47 percent to close at 7,919 points compared to 7,805 points yesterday.

In turn, small and mid-cap index EGX70 dropped 0.19 percent to close at 594 points, while the broader EGX100 index rose 0.06 percent to 1,041 points.

The market showed a sharp decline with a total loss of 33 billion EGP (U.S. $4.74 billion) for three sessions in a row since Field Marshal Abdel Fatah al-Sisi’s resignation from his post as Minister of Defense and the announcement of his bid for the presidency last Wednesday.

Market capitalization gained 1.7 billion EGP Tuesday, reaching 471.2 billion EGP, compared to 469.5 billion EGP Monday.

Head of technical analysis at Osool ESB for Securities’ Brokerage, Ihab el-Saeed attributed EGX30’s limited rise to the shares reaching extreme oversold levels after the intensive profit taking wave following Sisi’s announcement.

“EGX30 is greatly expected to offset its loss on Wednesday and Thursday,” Saeed told The Cairo Post.

A number of analysts and traders speculated over the blow that the market received 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 of investigating the sharp decline within certain investment funds.

Egyptians’ net sell-offs reached 69.9 million EGP, while Arabs and foreigners’ net purchases registered 32.5 million EGP and 37.4 million EGP respectively.

On Monday, EGX30 slipped 3.55 percent to close at 7,805 points, 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.

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