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Stock Market

Egyptian Stock Exchange Witnesses Collective Decline in Indices Amid Selling Pressures

The market capitalization lost 48 billion pounds, closing at the level of 2.031 trillion pounds.

By: Mohamed Zain

Wed, Mar. 6, 2024

The Egyptian Stock Exchange concluded Wednesday's session with a collective decline in indices, driven by selling pressures from Egyptian investors, while Arab and foreign traders leaned towards purchasing. Amid trading activities amounting to 9.7 billion Egyptian pounds, the market capitalization lost 48 billion pounds, closing at the level of 2.031 trillion pounds.

The EGX 30 index retreated by 3.02% to close at 29,743 points, while the EGX 30 capped index dropped by 3.49% to close at 37,137 points. Additionally, the EGX 30 total return index fell by 3.05% to close at 12,670 points.

Furthermore, the small and medium-sized enterprises index, EGX 70 equally weighted, declined by 3.4% to close at 7,202 points, while the EGX 100 equally weighted index slipped by 3.39% to close at 10,177 points.

 

EGX 30 Surges Following Central Bank's Interest Rate Decision: Forbes Report

Forbes magazine has shed light on the Central Bank's decision to raise key interest rates by 6% as part of the Egyptian government's efforts to accelerate the decline in inflation and eliminate parallel foreign exchange markets that constrain economic growth.

Forbes noted that as a result of the decision, Egyptian international bonds rose for over two years. Among the longest-dated bonds, the 2047 bonds witnessed the most significant increase, rising by 2.6 cents to reach 82.3 cents.

The EGX 30 index, one of the key indicators on the Egyptian Stock Exchange tracking the performance of the 30 most liquid stocks traded in the market, also rose by 4.8% following the report.

Earlier in the week, Fitch Ratings upgraded Egypt's external liquidity outlook after the country received the first tranche of financing worth $5 billion from a historic $35 billion deal with the UAE for the Ras Al Hikma project.

Egypt struck a deal with the UAE to develop the Ras Al Hikma area on the Mediterranean coast, stating that the deal would provide Egypt with $35 billion over the next two months. Reuters quoted Prime Minister Mostafa Madbouly as saying the project could attract $150 billion in investments and includes investment, commercial, residential, tourist, and entertainment areas, with work expected to begin early next year.

Reuters also reported that Egyptian dollar-denominated sovereign bonds rose on Friday ahead of the announcement of the deal and continued to rise into the afternoon.

 

 

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