CAIRO: The Egyptian Exchange (EGX) plunged Sunday, and market capitalization shed around 14.7 billion EGP ($2.05 billion) battered by intensive selling pressures led by foreign institutions and Arab retailers following U.S. and European shares’ fall Friday.
The European shares fell Friday due to mounting concerns over the pace of global growth. The Gulf markets collapsed as well with the UAE’s Dubai Stock Market and Saudi Arabia dropping around 6 percent today.
Market capitalization fell to 510.1 billion EGP, compared to 524.8 billion EGP Thursday.
The benchmark index EGX30 dropped by 4.06 percent, registering 9,163 points, down from 9,552 points Thursday. The small and mid-cap index EGX70 fell by 1.72 percent, reaching 627.4 points, compared to 651.6 in the last session, and the broader index EGX100 also decreased by 3.58 percent to register 1,140 points.
“When Wall Street sneezes, the world bourses catch cold,” Ahmed Abdel Rahman, chief technical analyst at Helwan Securities commented on EGX’s sharp decline.
Abdel Rahman told The Cairo Post that EGX performance was “normal” and “logical”, citing the sharp dip to the delayed correction, noting that traders should monitor the 8,800 level carefully.
“The market is expected to witness some upward rebounds in the next two sessions before resuming its southward direction again,” Abdel Rahman predicted.