ُEgypt market losses continue with institutions selling

Ahram Online , Tuesday 17 Nov 2015

Egyptian capital market
Egyptian capital market saw (AFP)

Egyptian stocks plunged for the third consecutive session this week amid high turnover and net institutional selling.

Benchmark index EGX30 dipped 1.13 percent to 6,407 points, and daily stock turnover recorded LE662.3 million.

The market has been in a downturn since last week, declining by more than 12 percent on the back of increasing uncertainty about political stability and security in the region following the recent Paris attack and the Russian plane that crashed in Sinai last month.

On Tuesday, Russia announced it believes the plane crash, which killed 224 people, was a result of a bomb on board, a claim that has not been confirmed by Egyptian authorities.

The ISIS militant group has claimed responsibility for downing the flight – through its Sinai affiliate Ansar Beit Al-Maqdis – as well as the Paris attacks.

These developments threaten the stability of the region and will prove an obstacle to economic recovery, Osama Mourad, chairman of Acumen Securities and Brokerage, told Ahram Online on Sunday.

Institutions which contributed half the trading in the Tuesday session were net sellers to the tune of LE12.6 million.

Market bellwether Commercial International Bank (CIB) dipped 2.61 percent to LE41 per share.

Real estate companies rebounded on Tuesday, with the Talaat Moustafa Group (TMG) holding rising 0.5 percent to LE5.97 per share, and Palm Hills Development (PHD) increasing 1.05 percent to LE1.89 per share.

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