EGX plunges 4.4% on currency worries, equities lose $1.7B
Egyptian exhange - YOUM7 (Archive)

CAIRO: The Egyptian Exchange (EGX) continued its tumble on Tuesday on intensive selling pressures from local and foreign institutions, amid growing speculation about further currency devaluation or an interest rate hike by the central bank in December.

The benchmark index EGX30 slid 4.4 percent to end at 6,825 points, down from 7,139 points on Monday.

On Tuesday, Egypt’s third-largest state bank, Banque Du Caire, issued savings certificates in Egyptian pounds with a 12.5 percent interest rate, three days after two other state banks, the National Bank of Egypt and Banque Misr, launched similar certificates.

Many EGX traders rushed to sell their stock to benefit from this high interest rate which is a safe haven from the risky stock trading. This added additional pressure on the gauge which has been hammered since Moscow announced Friday the suspension of Egypt-bound flights until an investigation into its deadly airliner crash in Egypt’s Sinai is completed.

The small and mid-cap index EGX70 dropped 3.84 percent to close at 363.52 points, compared to 378 points in its last session.

Similarly, the broader index EGX100 plummeted 3.4 percent to close at 790.2 points after 818 points on Monday.

Market capitalization shed around 13.4 billion EGP ($1.7 billion,) totaling 425.8 billion EGP, compared to 439.2 billion EGP in the previous session.

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