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Reading: Coronavirus fears erase EGX gains despite government stimulus
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Popular video-sharing app TikTok was granted by the U.S. government a 15-day extension to reach a deal with U.S. buyers, a federal court filing showed Friday. This means the deadline for ByteDance, TikTok's Chinese parent company, to reach a deal with Oracle and Walmart has been extended from Nov. 12 to Nov. 27, according to the U.S. District Court for the District of Columbia.
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Sukari gold mine’s production reaches 5.2 million ounces with $7.5bn revenues in February 2023
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EFG Hermes records EGP 11bn revenue in FY22
EFG Hermes records EGP 11bn revenue in FY22
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Dailynewsegypt > Blog > Business > Stock Market > Coronavirus fears erase EGX gains despite government stimulus
Stock Market

Coronavirus fears erase EGX gains despite government stimulus

Alyaa Stohy
Last updated: 2020/03/25 at 12:46 AM
By Alyaa Stohy 2 Min Read
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Traders work near the exchange bell at Egypt's Stock Exchange (EGX) in Cairo July 3, 2013. Cairo's benchmark dipped 0.3 percent, slipping off a three-week high and extending 2013 losses to 9 percent. Bourse data showed that foreign investors were sellers but Egyptians remained net buyers on hopes a military intervention would put an end to the Islamist president's rule. REUTERS/Mohamed Abd El Ghany (EGYPT - Tags: BUSINESS)
Traders work near the exchange bell at Egypt's Stock Exchange (EGX) in Cairo July 3, 2013. Cairo's benchmark dipped 0.3 percent, slipping off a three-week high and extending 2013 losses to 9 percent. Bourse data showed that foreign investors were sellers but Egyptians remained net buyers on hopes a military intervention would put an end to the Islamist president's rule. REUTERS/Mohamed Abd El Ghany (EGYPT - Tags: BUSINESS)
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Fears of consequences of coronavirus quickly re-dominated the minds of investors, erasing the gains of the stimulus package that the government launched to support the Egyptian Exchange (EGX).

Pessimism regained control once again on the expectations of traders, especially with the unclear vision about the outlook of the Egyptian economy with the start of curfew and fear of acceleration of coronavirus spread in Egypt. The virus’ impact on production, companies, and economy, in general, would be grave.

The stimulus included President Abdel Fattah Al-Sisi’s statements to pump EGP 20bn by the Central Bank of Egypt (CBE), which followed reduced stamp tax, gas, and electricity prices for factories.

The Financial Regulatory Authority (FRA) abolished the temporary suspension for the EGX100 in cases of gains in line with global markets and kept the mechanism in place for losses only. Contrary to what was expected from this decision, the EGX30 fell 2.76% to 9770 points, due to pressure from foreign and Arab investors, amid trading volumes declining again to EGP 761.9m after having exceeded EGP 1bn before.

Mohammed Al-Aassar, Director of technical analysis at Namaa Securities, believes that the index will continue to decline towards 9,500 points, driven by expected sales pressures as the emergency procedures in the country continues and the escalating fears of coronavirus outbreak.

For his part, Mohamed Kamal, director of trading at Rowad Securities, believes that the presence of large margin call operations in the market will continue selling pressure on the shares, and then the EGX decline scenario remains the closest, especially with the application of the curfew and the continuing concerns about the inflation implications of the coronavirus on the Egyptian economy.

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TAGGED: coronavirus, EGX, government
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Popular video-sharing app TikTok was granted by the U.S. government a 15-day extension to reach a deal with U.S. buyers, a federal court filing showed Friday. This means the deadline for ByteDance, TikTok's Chinese parent company, to reach a deal with Oracle and Walmart has been extended from Nov. 12 to Nov. 27, according to the U.S. District Court for the District of Columbia.
TikTok updates its community guidelines
Business
Strong representation of women in TV series of Ramadan 2023
Strong representation of women in TV series of Ramadan 2023
Culture Cinema
IFC to invest in Mediterrania Capital Partners’ fund to support African mid-cap businesses
IFC to invest in Mediterrania Capital Partners’ fund to support African mid-cap businesses
Business
Sukari gold mine’s production reaches 5.2 million ounces with $7.5bn revenues in February 2023
Sukari gold mine’s production reaches 5.2 million ounces with $7.5bn revenues in February 2023
Business
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