Last Update 17:22
Thursday, 17 October 2019

Egypt's stocks end the week in red on correction

Egypt's main index suffers 9.5 percent drop in just over a week, following nine months of significant gains

Ahram Online, Thursday 3 Apr 2014
The Egyptian stock market (Photo: Reuters )
Views: 824
Views: 824

Egypt’s stocks ended the week's trading in red, part of what an analyst says is a correction process after nearly a year of significant gains in the main index.

The streak of gains caused for securities' prices to be overvalued, says Ahraf Abdel-Aziz, head of institutional sales at Arabeya Online securities.

In the past nine months, Egypt's benchmark index EGX30 has risen almost 80 percent to record a new peak of 8,501 points on 25 March. The recent decline represents a 9.5 percent drop in just over a week.

The EGX30 closed with a 2.89 percent drop on Thursday to register 7,701 points.

"The market’s considerable rise in the past nine months was never really corrected," said Abdel-Aziz. "The magnitude of this week’s decline matched this rise and is expected."

The market's positive performance attracted more investors throughout those months, he added.

The market has made significant losses following last week's announcement by former army chief Abdel-Fattah El-Sisi that he would run for president.

Listed stock turnover amounted to LE1.2 billion in Thursday's session.

Egyptian investors were net sellers to the tune of LE0.5 million, while foreigners, Arabs and others were net buyers.

All of the EGX30's listed shares were in the red.

Market bellwether Commercial International Bank (CIB) fell 2.24 percent to LE36.7 per share.

Telecom Egypt's (TE) shares were the biggest EGX30 decliner in the session, plunging 8.31 percent to LE15.95 per share.

In the telecom sector, Orascom Telecom Media and Technology (OTMT) was also down, dropping 7.44 percent to LE1.14 per share, while Global Telecom Holding inched down 1.35 percent to LE4.45 per share.

The real estate sector saw shares in Palm Hills and TMG Holding fall by 5.59 percent to LE3.63 per share and 1.75 percent to LE7.87 per share, respectively.

The broader index EGX70 fell 2.47 percent.

Short link:


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.

© 2010 Ahram Online.