EGX tumbles as Egypt freezes assets of Juhayna CEO, benchmark dips 3.2%
Egyptian stock exchange - YOUM7 (Archive)

CAIRO: The Egyptian Exchange (EGX) posted a sharp slip at the close of Sunday’s session, after Egypt froze assets owned by chairman of Juhayna Food Industries on alleged ties to the banned Muslim Brotherhood (MB.)

The decision excluded the assets of Juhayna, as it is a joint stock company, according to the head of the committee formed to seize and manage the assets of the MB.

On Sunday, Juhayna sank 7.51 percent after state- news agency MENA reported Thursday that the EGX would freeze company shares owned by its chairman Safwan Thabet on alleged links to the MB, upon receiving an official request.

The benchmark index EGX30 slipped 3.22 percent to end at 7,626 points, down from 7,880 points on Thursday.

Market capitalization shed around 10.7 billion EGP ($1.36 billion,) totaling 474.2 billion EGP, compared to 484.9 billion EGP in the previous session.

The freeze will not affect other shareholders in the company and the company’s shares will be available for trading as normal, while Thabet will be banned from selling, purchasing, or disposing of his shares, MENA quoted EGX chairman, Mohammed Omran.

Meanwhile, Juhayna asserted in a Thursday statement its intention to continue operations, implement planned investments and expansions.

Similarly, the small and mid-cap index EGX70 dropped 2.86 percent to end at 428.6 points, compared to 441.2 points in the last session.

The broader index EGX100 also dipped 2.21 percent to close at 901 points.

Last week, Egypt’s market posted a sharp slip and its market capitalization shed around 10.06 billion EGP ($1.27 billion,) shrugging off the New Suez Canal’s inauguration on August 6.

The benchmark plunged 2.89 percent to end the week at 7,880 points, compared to 8,114 points a week earlier.

Recommend to friends

Leave a comment