The series of losses for the Egyptian Stock Exchange (EGC) continued for the second consecutive trading day, with the market losing some EGP 7bn. The preceding day the market lost EGP 4bn.
The benchmark index EGX-30 declined by 1.62%, dropping to 8493.68 points compared to 8633.86 points the day before. The EGX-70 index, which encompasses small- and medium-sized enterprises, dropped by 2.81%, while the broader index EGX-100 inched down by 2.18% to stand at 962.75 points.
The trading day ended with 141 decliners, 9 gainers and 26 unchanged.
Egyptian traders opted to sell stocks, while foreigners and Arab investors preferred to buy. Individual traders chose selling, while institutions were more directed towards buying shares.
Early Monday, El-Dawlia Fertilisers and Chemicals Company (ICFC) announced its intention to increase its capital from EGP 30m to EGP 45m through the issuance of free stocks.
Last week, investment bank EFG Hermes submitted a similar request, aiming to increase its capital by EGP 391.83m. Regarding how the company offered these stocks, EFG Hermes said that for every 10 stocks in the company, a 1.460 free stock will be offered. The offering was financed from the company’s 2014 revenues.
The EGX was chosen by the African Stock Exchange Association (ASEA) to host the ASEA Executive Committee meetings on Monday.
An official statement form EGX said that African stock exchanges’ heads were present “in order to discuss ASEA development’ mechanisms and the executive plan to activate the association’s role to develop the African markets and to promote them so they could occupy the position they deserve on the global investment’ map“.