Cairo – Mubasher: EGX indices retreated to the negative territory, dragged by a breaking selling wave.
The benchmark saw the sheerest decline since the eleventh of February, closing 2.59% lower to 7,459.8 points.
The Small and mid-cap EGX70 slipped 1.4% to 361 points. The broader index EGX100 was 2% down to 773.6 points. Likewise, the equal-weighted EGX50 tumbled 2.8% to 1400.9 points.
Market capitalization lost EGP7.5 billion ($842.5 million) to settle at EGP401.7 billion against EGP409.2 billion on Tuesday.
CIB, the largest EGX constituent, fell 2% to EGP39.5 with a trading value of EGP94.9 million.
The Egyptian Exchange’s trading value stood at EGP972.6 million. Out of 179 stocks, the bourse also saw 142 stocks move down, 16 go up, and 21 ones stay at their previous levels.
The top losers were Northern Upper Egypt Development & Agricultural Production (-7.34%), El Nasr For Manufacturing Agricultural Crops (-7.24%), Naeem Holding (-6.82%), Maridive & oil services (-6.67%), and Rubex International for Plastic and Acrylic Manufacturing (-6.50%).
Meanwhile, the top gainers were led by Memphis Pharmaceuticals with a rise of 9.99%, followed by Pyramisa Hotels (+7.41%), Belton Financial Holding (+6.72%), Misr Oils & Soap (+4.76%), and Arab Valves Company (+4.39%).
Mahmoud Hossam, Investors Relation Manager at Mubasher Trade, described Wednesday’s performance as a “violent downturn” following a continuous wave of uptrends. However, the bourse saw a healthy correction, said Hossam, shutting out any impact of Giulio Regeni murder on Cairo bourse.
Ziad Sheta, client accounts manager at Grand Capital, also said that the main gauge had been moving sideways for a long time, describing the sudden decline as a “needful healthy correction”.
Both analysts anticipated EGX30 to initiate Thursday on a lower note; however, it could either steady or rise if the pace of sale is winded down, namely the Saudi King will visit Egypt tomorrow.
Earlier on Wednesday, a state official, who preferred to stay anonymous, said the Egyptian government will sign 13 loan agreements worth $1.9 billion with Saudi Arabia during King Salman’s three-day visit.
Translated by Ahmed El-Sayed Ali
