EGX incurs 10B EGP loss on profit taking Thursday
The Egyptian stock exchange - AFP/Khaled Desouki

CAIRO: The Egyptian Exchange (EGX) indexes sharply declined Thursday amid intensive profit taking by Egyptian investors. Market capitalization incurred a 10 billion EGP ($1.4 billion) loss, reaching 461.2 billion EGP, compared to 471.2 billion EGP Wednesday.

The benchmark EGX30 fell 2.89 percent to close at 7,701 points compared to 7,930 points Wednesday. The small and mid-cap index EGX70 dropped 2.74 percent to close at 574points, while the broader EGX100 index declined 2.59 percent to 1,009 points.

The EXG has declined sharply, losing a total 41.1 billion EGP ($5.89 billion,) since the resignation of Field Marshal Abdel Fatah al-Sisi from his post as Minister of Defense and the announcement of his bid for the presidency last Wednesday.

“EGX30 failed to maintain the new support level at 8,130 points amid intensive selling pressures by Egyptian institutions following since Sisi’s announcement,”  head of the Egyptian Exchange Mohamed Omran told The Cairo Post Thursday.

Tuesday, the market showed signs of recovery with the benchmark EGX30 edging up 1.47 percent to close at 7,919 points, but recovery stalled on Wednesday as three explosions rocked Cairo University.

A number of analysts and traders speculated over the blow the market received last Thursday, and urged competent authorities to immediately investigate.

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 the Money Cycle conference which took place in Cairo Monday.

Egyptians’ net sell-offs reached 520 million EGP Thursday, while Arabs and foreigners’ net purchases registered 290 million EGP and 230 million EGP respectively.

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