Egypt Market Watch | June 10th 2015: Egyptian equity markets nose-dive by EGP 1.2 billion

Cairo, Egypt (Capital Markets in Africa):- The Egyptian Exchange (EGX) indices nose-dive, with the market capitalisation giving away nearly EGP 1.2 billion to close at EGP 490.888 billion (against EGP 492.076 billion recorded yesterday), pressured by sell-offs among foreign investors and Egyptian institutional investors despite MSCI decision to keep Egyptian equities in its emerging markets index and Central bank coverage of 50% of the dollar backlog owed to foreign investors.

The benchmark index EGX30 plunged by 0.25 percent or 21.50 points to end the day at 8,639.43 points (-3.22 percent year-to-date performance). Equally, the small and mid-cap index EGX70 plummeted by 0.60 percent or 2.70 points to settle at 450.14 points (-20.39 percent year-to-date return). Also, the broader index EGX100 tumbled by 0.71 percent or 6.84 points to 954.65 points (-12.45 percent year to date performance) and the EGX20 capped index declined by 0.37 percent to close at 8,868.30 points (-11.59 percent year-to-date).

From market activity perspective, today turnover amounted to EGP 474.882 million, generated from exchanging 129.405 million shares. In term of investor type, Egyptian investor was net buyer of EGP 18.341 million, while Egyptian and foreign (non-Arab) investors were net sellers of shares worth EGP 22.980 million and EGP 22.201 million respectively. On the other hand, retail investors (accounted for nearly 36 percent of the total value) were net sellers and institutional investors were net buyers (accounted for about 67 percent of the total value).

The market sentiment was negative today (measured as gainers/losers ratio), out of the 166 traded securities, 42 gainers, 81 losers and 43 remained unchanged. On the gainers side were Nasr Company Civil Works Egypt progressed by 9.61 percent to close the trading sessions at EGP 20.54 and Acrow Misr surged by 5.97 percent with closing price of EGP 29.99. Likewise, Misr Oils & Soap Egypt rose by 4.54 percent to end at EGP 10.83 and Egyptian Arabian (CMAR) Egypt advanced by 4.26 percent to trade at EGP 0.98. On the contrary, Saudi Egyptian Investment & Finance Egypt, Natural Gas & Mining (Egypt Gas), Cairo Educational Services Egypt and EL Nasr plunged by 7.75 percent to trade at EGP 51.77, 7.70 percent to end at EGP 29.24, 7.28 percent to settle at EGP 10.32 and 5.40 percent with a closing price of EGP 9.63 respectively.

From the sector perspectives, Banks (gained 0.32 percent with year-to-date yield of 16.58 percent), Food & Beverage (went up by 1.48 percent) and Financial Services excluding Banks (surged by 0.02 with -18.00 percent year-to-date return). On the other hand, Basic Resources lost 1.94 percent, Construction & Materials plummeted by 0.90 percent, Chemicals lost by 0.09 percent, Telecommunications declined by 0.48 percent and Real Estate sector index plummeted by 1.03 percent. Equally, Personal and Household Products plunged by 0.67 percent and Industrial Goods & Services dropped by 2.02 percent.