Profit-taking pushes down Egyptian stocks in 1st week after Eid Al-Adha

Muhammed Khalid , Thursday 6 Jul 2023

The Egyptian Exchange's (EGX) indices ended in red territory this week, as investors generate liquidity, and eye building new positions on TAQA Arabia shares.

EGX trading hall. Ahram Gate.
EGX trading hall. Ahram Gate.


The benchmark index, EGX30, declined by 3.2 percent over the week, reaching 17,102.3 points.

"The decline in the EGX30 was the result of the selling pressures on the Commercial International Bank (CIB) stock, which is the biggest stock in the index, and on other leading stocks," Trader Manager at Universal Brokerage Mohamed Atta told Ahram Online.

CIB dropped 2.5 percent on Thursday, closing at EGP 48.32, compared to its level on Wednesday.

The small and medium enterprises (SMEs) index, EGX70, slipped 1.7 percent to end at 3,474.23 points.

The EGX100 shrank by 1.83 percent over the week to stand at 5,146.38 points, while the EGX50 index decreased by 2.45 percent, closing at 3,182.43 points.

"Profit taking was also active in the market, which had a negative impact on the EGX70, as traders, especially Egyptians, were increasing their liquidity, seeking new opportunities ahead of the listing of TAQA Arabia on Sunday," Atta explained.

The market cap lost EGP 30 billion in the week ending on 6 July, settling at EGP 1.162 trillion, while the trading value decreased by nearly 10 percent to EGP 1.67 billion.

"The negative performance of indices is normal after the holiday and is a result of temporary correction movements," stated the trading manager.

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