Arab institutions save EGX from repercussions of church bombing

Mohamed Ahmed
2 Min Read
Last July, Mehleb's government approved imposing a 10% tax on dividends in addition to another 10% tax on capital gains earned from investment in the stock market, but it halted the decision, citing maintaining market competitiveness. (Photo by Mohamed Omar)

Arab financial institutions succeeded in turning the tide, as the Egyptian Exchange (EGX) dropped to 11,224 points during the first half hour of trading on Monday, to close with gains despite the expected downturn on the back of the bombing of the St. Peter and St. Paul Church on Sunday.

The EGX closed in the green, up by 1.29%. The EGX30 closed at 11,444 points in a sudden and unexpected market shift.

Total trading recorded EGP 1.467bn over 400.3m shares.

Arab institutions marked net purchases worth EGP 72.218m, though Arab individuals sold shares worth EGP 23.136m. Foreigners registered net purchases worth EGP 239,000 supported by EGP 5.45m in purchases by foreign institutions.

Egyptian institutions meanwhile registered net purchases of EGP 1.5m, and trade totalling EGP 49.32m.

The head of the technical analysis department at the National Bank of Kuwait for investment in North Africa and the Middle East, Mohamed Al-Assar, said the market was revived on Monday particularly by Arab purchases.

Al-Assar said he expects the EGX to continue climbing on Tuesday, reaching 11,450 points.

Ehab Rashad, managing director of Mubasher Securities International and board member of Mubasher Securities Portfolio Management, said the EGX did crumble under pressure from the terrorist attack, as similar acts in the past have made the EGX more flexible.

He added that the EGX is likely to surpass 11,600 points on Tuesday, which had already happened in November before the performance dropped in a wave of profit making.


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