Rumors that Ahmed Ezz, business tycoon and the ruling National Democratic Party's (NDP) organization secretary, have fled the country caused shares of his three listed companies to tumble.
Twenty-four hours after the rumors began to spread, Ezz has yet to surface and no official denial has been published.
Ezz Porcelaine (Gemma) recorded the largest decline at 10 per cent with the shares drown from LE4.31 to LE4.00, leading to freeze its trading, in accordance to the Stock Market law. The share then declined further on Thursday to LE3.5, amidst general panic among traders.
Ezz Steel recorded 13.6 per cent loss following yesterday's decline of 8 per cent. Finally, the shares of Ezz Al-Dekhela decreased by 15.46 per cent on Thursday after a 3 per cent decline the day before.
"The Stock Market was affected on the macro level, not by a specific company," CI Capital securities analyst Hani Samy said on Wednesday.
Several companies have experienced losses exceeding 16 per cent, but that does not mean its owners ran away, said Samy, adding that rumors about Ezz are mostly wrong.
In fact, according to the NDP's website, Ezz held several meetings with parliamentarians and party member. However, no photos from the meetings are available.
Egypt’s benchmark EGX30 index fell sharply today after demonstrations swept across several cities yesterday demanding economic and political reforms. This turmoil spread jitters among investors, causing the index to fall more by than 10 per cent, the biggest one-day decline in its history.