Cairo-Mubasher: The Egyptian Stock Exchange (EGX) saw a negative performance this week, affected by the Central Bank of Egypt’s decision (CBE) decision to raise the interest rates.
The CBE raised key interest rates by 100 basis points at its monetary policy meeting on 16 June.
The interest rate decision will not only raise the production and funding costs, but it will also negatively impact the companies’ financial results, Ehab Saeed, CEO of Osoul Securities, said.
The general index declined 2.25%, or 167.08 points, to reach 7,253.31 points this week.
The EGX30 index moved this week below 7,275 points, the level it managed to stay above since March, Sameh Gharib, head of the technical research department at Roots Securities, noted.
The main index is trying to hold at its current level and make a correction upward, targeting 7,400 points, Gharib added.
The EGX70 index retreated 3.4%, or 12.86 points, to 348.04 points, while the EGX100 slid 2.57% to 746.8 points.
Market capitalization decreased by EGP 6.44 billion to reach EGP 392.66 billion this week, compared to EGP 399.11 billion last week.
