Last Update 16:42
Sunday, 20 October 2019

Egypt market sinks 5% as foreigners revaluate investments on global losses

EGX30 drops the lowest it has in a month as falling oil prices continue to pull down regional and global mrkets

Waad Ahmed , Sunday 14 Dec 2014
Egyptian stock market
An interior view of the Egyptian stock market is seen in Cairo (Photo: Reuters)
Share/Bookmark
Views: 1704
Share/Bookmark
Views: 1704

Egypt's market tumbled on Sunday as foreigners and Arab investors exited the market following global and regional losses, analysts said.

Benchmark index, EGX30, dipped 5.23 percent to record 8,715 points, the lowest value in a month and a half. Daily stock turnover reached almost LE730 million.

The new prices for the gulf stocks mean that Egypt's stock prices are not necessarily lower than the gulf, so foreign and Arab investors are revaluating their investment priorities, an analyst told Ahram Online.

“Funds made losses as the drop in oil prices pulled down regional and global markets,” Mohamed Radwan, head of equities at Cairo-based Pharos Holding, said.

Although Egypt is benefiting from falling oil prices, institutions investing in the MENA region needed to compensate for losses made in Gulf markets, Radwan added.

Institutions in Egypt’s market, which made more than 30 percent of all trades, were net sellers to the tune of LE24 million, non-Arab foreigners were net sellers to the tune of LE25 million and Arab investors were net sellers to the tune of LE19.4 million. Egyptian investors were net buyers to the tune of LE44.4 million.

An OPEC decision not to cut oil production in November, despite oversupply and falling demand, drove losses in global markets.

The MSCI world equity index was down 1.41 percent, Saudi Arabia’s index fell 3.27 percent and the Dubai index dropped 7.61 percent. Brent fell to 61.58 per barrel on Friday.

Egypt's leading investment banks took the second biggest hit, falling 8.28 percent to LE16.23 per share. Ezz Steel dropped 9.2 percent to close at LE14.19.

Market bellwether, Commercial International Bank (CIB) was down 4.15 percent to LE46.9 per share.

Landline monopoly Telecom Egypt decreased by 3.72 percent to LE12.5 per share and Global Telecoms Holding fell 7.39 percent to LE3.67 per share.

Real estate leading stock, Talaat Moustafa Group dropped 4.36 percent to LE9.69 per share and Palm Hills for development dipped 6.95 percent to LE3.76 per share.
Broader index EGX70 fell 5.26 percent.

Short link:

 

Email
 
Name
 
Comment's
Title
 
Comment
Ahram Online welcomes readers' comments on all issues covered by the site, along with any criticisms and/or corrections. Readers are asked to limit their feedback to a maximum of 1000 characters (roughly 200 words). All comments/criticisms will, however, be subject to the following code
  • We will not publish comments which contain rude or abusive language, libelous statements, slander and personal attacks against any person/s.
  • We will not publish comments which contain racist remarks or any kind of racial or religious incitement against any group of people, in Egypt or outside it.
  • We welcome criticism of our reports and articles but we will not publish personal attacks, slander or fabrications directed against our reporters and contributing writers.
  • We reserve the right to correct, when at all possible, obvious errors in spelling and grammar. However, due to time and staffing constraints such corrections will not be made across the board or on a regular basis.
2



Sam Enslow
14-12-2014 05:36pm
1-
8+
Aladdin right, but...
The main reason the world markets are down so much has little to do with OPEC. Their lack of action did not affect the amount of oil on the market or even the supply/demand equations. It did, however, affect those who trade in oil future contracts, especially options. Many bet that oil would go to $75. A barrel. When oil went lower, they had to sell fast, take what they could get. Thus dropped the price further. Many who trade options trade with borrowed money 'on margin'. These margins get 'called' (must be paid). Unlike stocks which can be held as long as one wishes, options have time limits. If a trader has options, especially margined options, he may be forced to sell good stocks to pay for his bad margined options. Thus is why stocks that have little or nothing to do with petroleum fall too. Traders need cash.
Email
 
Name
 
Comment's Title
 
Comment
1



Aladdin, Alex
14-12-2014 03:29pm
0-
6+
LIES & DISHONESTY
Absence of rules, inside trading, and fake financial reports are the reasons for failure. It is not the world market.
Email
 
Name
 
Comment's Title
 
Comment
Latest

© 2010 Ahram Online.