CAIRO: The Egyptian Exchange (EGX) indexes sharply declined during Thursday’s mid-session, amid intensive profit taking by Egyptian investors. Market capitalization incurred a 6.4 billion ($940 million) EGP loss, reaching 464.8 billion EGP, compared to 471.2 billion EGP Wednesday.
The benchmark EGX30 fell 2.79 percent to close at 7,709 points compared to 7,930 points Wednesday. The small and mid-cap index EGX70 dropped 2.33 percent to close at 576 points, while the broader EGX100 index declined 2.28 percent to 1,012 points.
The EXG showed has declined for three consecutive sessions with a total loss of 33 billion EGP (U.S. $4.74 billion) since the resignation of Field Marshal Abdel Fatah al-Sisi’s from his post as Minister of Defense and the announcement of his bid for the presidency on Wednesday last week.
On Tuesday, the market showed signs of recovery with the benchmark EGX30 edging up 1.47 percent to close at 7,919 points, but the market failed to offset its loss, which was attributed to the explosion at Cairo University Wednesday.
“Profit taking amid the state of panic which controlled traders following intensive selling by Egyptian institutions since Sisi’s announcement, behind the ongoing decline and sharp loss,” advisor of technical analysis at Pioneers Securities Hossam Helmy told The Cairo Post Thursday.
Helmy said he expected the EGX30 to see greater decline during Thursday. EGX30 will target 7,800 points to 8,300 after failing to shoot above the former resistance level at 8,600 points.
A number of analysts and traders speculated over the blow that the market received last Thursday, and urged competent authorities to immediately investigate the matter.
The head of the Egyptian Exchange Mohamed Omran ruled out possible manipulation in the market, denying reports of investigating the sharp decline within certain investment funds.
“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,” Omran told The Cairo Post on the sidelines of Money Cycle conference which took place in Cairo Monday.
Egyptians’ net sell-offs reached 472 million EGP, while Arabs and foreigners’ net purchases registered 267 million EGP and 205 million EGP respectively.