Tuesday 23 March 2021
Books – Mustafa Eid:
The Egyptian Stock Exchange is witnessing sharp declines during the trading session today, Tuesday, to continue its decline for the seventh consecutive session.
The Stock Exchange suspended trading for half an hour during today’s session after the first hour and 5 minutes had passed from its inception, after the EGX100EWI index collapsed by 5%.
Two hours after the start of the session (and trading was suspended in a quarter of this period), the main index of the EGX30 stock exchange decreased by 1.76% to the level of 10352 points, trimming its losses after resuming trading with a slight rebound, compared to its level before the trading halt.
While the EGX70EWI index of small and medium stocks tumbled by 6.2% to the level of 1801 points, and the broader EGX100EWI index by 5.08% to 2701 points.
The main index of the EGX30 fell at the end of trading yesterday, by 2.45% to the level of 10537 points, after losing all the gains it had achieved during the current year, to turn to the current loss by 4.5%.
While the EGX70EWI index lost about 16% of its level since the beginning of this year, and the EGX100EWI index lost 12.81% since the beginning of the year as well.
Ihab Saeed, managing director of the branches at Osoul Securities Brokerage, told Masrawy that the sharp declines in the Egyptian Stock Exchange came as a result of corrections for a number of “speculative” shares after unreasonable rises.
Said Lamasrawi added that what is happening is a “balloon and pop” for the EGX70EWI index of small and medium stocks, which witnessed unreasonable large increases over the past year.
He pointed out that the shares of the main index EGX30 follow the declines that occurred in the shares of the seventieth index due to the inability of investors to transfer their money to the shares of the main index due to the sharpness and speed of the decline in the shares of the EGX70EWI index.
Saeed attributed what is also happening to the absence of foreign investors and strong institutions in the market, with the concentration of liquidity in the shares of the EGX70EWI Index, which is controlled by speculators, “and there is no market based on speculative stocks.”
He emphasized the need for the Egyptian stock exchange to “new commodities” through new market proposals in order to attract foreign investors and institutions once again to him and to return strong liquidity.
Saeed expected that the market will consolidate and stop bleeding with the EGX70EWI index reaching the level of 1775 points, and the main index to the level of 10260 points, with an upward rebound movement after that.