Egypt Independent

Stock exchange loses 5.2 bln Thursday; delay in IMF loan bad for market, says analyst

Stock indexes fell significantly at the end of trading on Thursday, influenced by heavy selling transactions made by foreign investors for a profit. Market capitalization fell to LE387.9 billion, a total loss of LE5.2billion.

The main index EGX30, which tracks the performance of the Top 30 companies, fell by 1.9 percent, losing 112 points to settle at 5,754 points, with transactions of LE505.5 million.

The closing prices of 129 securities fell on Thursday, while 31 securities went up.

Brokers said that the session witnessed heavy selling by foreign investors in order to reap profits after huge purchases in recent sessions.

Mohsen Adel, vice president of the Egyptian Association for Financing and Investment Studies, said that these profits would be short-lived, and predicted that main index would recoup its losses.

Adel added that the delay of the International Monetary Fund’s US$4.8 billion loan is not good for the market.

In his opinion, however, long term investors are likely to be patient until an agreement with the IMF is reached.

Edited translation from Al-Masry Al-Youm