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Capital markets shed EGP 2.5bn

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Market indices drop was due to profit-taking by investors: member of EGX board of directors

The benchmark EGX-30 Index slumped 0.64% on Wednesday to register 6205.3 points, down from Tuesday’s 6245.4, while capital markets lost nearly EGP 2.5bn. (AFP File Photo / Khaled Desouki)

The benchmark EGX-30 Index slumped 0.64% on Wednesday to register 6205.3 points, down from Tuesday’s 6245.4, while capital markets lost nearly EGP 2.5bn.
(AFP File Photo / Khaled Desouki)

The benchmark EGX-30 Index slumped 0.64% on Wednesday to register 6205.3 points, down from Tuesday’s 6245.4, while capital markets lost nearly EGP 2.5bn.

The drop comes only a day after the clashes of Shura Council, where Central Security Forces (CSF) forcibly dispersed a protest against military trials of civilians. However, Mohsen Adel, a member of the board of directors of the Egyptian stock market, denied any direct relation between the two events.

Adel instead attributed it to the operation of a series of price corrections in the market, which he said began last Wednesday when investors began the profit-taking process. “The slide of the indices was expected,” he said.

Mohamed Youness, head of technical analysis at Pioneers Holding, echoed Adel’s opinion by saying that after overcoming the 6000 point barrier in October, investors were expected to shift gears toward collecting their profits.

The EGX-70 Index, which encompasses small and medium sized companies, retreated by 0.56% to 520.4 points.

The broader EGX-100 Index fell by 0.77% to 868.3 points. The EGX 20 cropped index also decreased by 0.67% to register 7251.2 points.

Overall, the stock market has overcome last week’s tensions on the commemoration of the 2011 Mohamed Mahmoud Street clashes, as the main index EGX-30 rose 1.04% to reach 6407.1 points on 19 November.


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