EGX dips as global markets sink; benchmark slips 3.3%
The Egyptian stock exchange - AFP/Khaled Desouki

CAIRO: The Egyptian Exchange (EGX) plunged once more, and market capitalization shed around 12.2 billion EGP ($1.7 billion) at the close of Thursday’s session hammered by a strong selling spree among local retailers and institutions, as well as foreign traders.

The benchmark index EGX30 recorded an 11-month low, mimicking global market falls yesterday amid ongoing fears of looming economic turmoil.

The EGX30 slipped 3.38 percent, registering 8,593 points, down from 8,893 points Wednesday. The small and mid-cap index EGX70 dropped by 4.66 percent, reaching 572.2 points compared to 600.1 in the last session, and the broader index EGX100 decreased by 3.83 percent to register 1,050 points.

Market capitalization dropped to 486.7 billion EGP compared to 498.9 billion EGP Wednesday and turnover edged up to 1.1 billion EGP.

During this session, 166 stocks declined, six shares went up and 14 remained stagnant.

“Retailers, namely local traders, are selling due to panic triggered from the global markets’ plunge, while Arab and foreign traders tended to purchase,” Ahmed Abdel Rahman, chief technical analyst at Helwan Securities, told The Cairo Post Thursday. “The benchmark shut below its main support at 8,800 points. If the index breached below this level for two successive sessions, it will be an indicator of reversing its medium-term trend.”

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