Egypt Independent

Stock market sees modest losses



After a good start to this week’s transactions, the Egypt stock market ended Monday’s session in the red as its benchmark EGX 30 plunged by 0.44% to close at 5449 points. This was due to Arab investors selling which reached EGP 3.2 million.
 
Moreover, non-Arab, foreigner investors represented net sellers with EGP 1.1 million, while Egyptian investors were today’s net purchasers with EGP 4.3 million.
 
However, EGX 70 (the index which for small and medium sized companies) saw a slight increase of 0.38 % to close at 4.8168 points, while EGX 20 decreased by 0.53%.
 
“During today’s session, the benchmark EGX 30 saw a fluctuant movement, it rises [sic] at the beginning, then it declined, which refers to a strong transaction activity especially with the prominent shares,” said Eissa Badra, a market expert.
 
Badra said that over the last period, the market saw a state of profit gaining, with most foreign investor’s transactions tending to sell while Egyptian investors were the net purchasers.
 
Badra noted that transactions were relied mainly on shares in the construction, financial and banking sectors.
 
“It is cut and dry that the recent political unrest and street violence hammered the Egyptian stock market,” Badra continued.
 
Badra explained that the recent news of Muslim Brotherhood leaders’ arrests has had a positive impact on the stock market, showing that investors are expecting stability.
 
The stock market was suffered a loss of EGP 5 billion and over 300 points after the military dispersed both Rabaa Al-Adwya Mosque and Nahda square sit-ins.