Egyptian stock market indices rise following Tuesday's plunge

Ahram Online , Wednesday 6 Jun 2018

Egyptian stock exchange
Traders work at the Egyptian stock exchange in Cairo (Reuters)

The Egyptian Stock Exchange saw a rise in its indices on Wednesday morning's trading, following a sharp downturn on Tuesday.

The benchmark EGX30 index increased by 0.42 percent to hit 16,089 points.

The small- and mid-cap EGX70 index increased to 0.16 percent, while the broader EGX100 index increased by 0.18 percent.

The Egyptian Exchange (EGX) ended Tuesday in the red after a sharp downturn as market capitalisation lost EGP 15.5 billion, closing at EGP 912.12 billion, amid reports of an upcoming hike in energy prices.

Moatassem Al-Shahidy, a board member of a security brokerage company, says the huge plunge in Egypt's stock market on Tuesday was driven by many investors, funds and companies' decisions to liquidate large amounts of their portfolios in preparation for the Egyptian government's planned offerings of state-owned companies in the stock market, according to state-owned MENA news agency.

"The stock market performance witnessed a decline as investors started to sell off stocks after the government announced its plan to offer shares of a number of state-owned companies during the second half of this year," Al-Shahidy said in statements to MENA.

He pointed out that the government offerings will increase the stock market's liquidity, as each offering will stand at least EGP 1 billion.

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