A major collapse… Why did the Egyptian Stock Exchange decline by more than 6% today?

02:18 PM

Monday, March 18, 2024

Egyptian Stock Exchange

Written by: Sherine Salah:
Stock market indices tumbled by the end of Monday’s trading, with its main index, the EGX30, falling by 6.34% at 29,091 points.

The EGX70 index for small and medium-sized stocks also fell by 7.62%, and the broader EGX100 index fell by 7.85%.

Hanan Ramses, a financial markets expert and member of the Board of Directors of Al-Hurria Securities Trading Company, explained that the stock market indicators’ decline at these levels since the beginning of Monday’s trading session indicates that the sales of local institutions negatively affected the performance of the stock market, which pushed the shares of today’s session to decline, which pushed the stock market shares to decline due to… Operations by individuals.

She explained to Masrawy that the market has been unstable for some time as a result of some stocks being valued at the dollar price in the parallel market, and after its decline, the valuation of these stocks declined.

More than two weeks ago, the Central Bank raised the interest rate by 6% in an extraordinary meeting, and the banks raised the official dollar rate from about 31 pounds, to about 50 pounds, before it fell again to about 48 pounds.

Ramses stated that there is a decline in purchasing power in the stock market as foreign institutions tend to invest in bonds and not stocks, as the trading volume during the month of Ramadan does not exceed 4 billion pounds.

The main index of the Egyptian Stock Exchange, EGX30, fell by 0.81% to 31,061 points, at the end of trading yesterday, Sunday.

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