Half an hour of shocking losses at the Egyptian Stock Exchange. What is the relationship between the Renaissance Dam?

Violent and shocking losses prompted the management of the Egyptian Stock Exchange to suspend the session for half an hour. The stock exchange said in a statement today that this is due to the 5% drop in the larger “EGX 100” index.

In the middle of today’s session, the main index of the Egyptian Stock Exchange “EGX30” fell 2.46% to the level of 10161 points.

The EGX70 index of medium and small companies fell 5.97% to 1,874 points, while the new equal-weight EGX 100 index fell 5% to 2,781 points and the equal-weight EGX50 index fell. of 4.62%., At the level of 1938 points.

The Egyptian Stock Exchange had started trading today with a collective decline, with continued selling pressure from Egyptian and foreign investors.

In a related context, the Egyptian Stock Exchange announced the suspension of trading of 62 shares for a period of 10 minutes, as they exceeded 5%, up or down, issued by Atlas for Investment and Food Industries, Ismailia Misr Poultry.

The management of the Egyptian Stock Exchange announced the implementation of the public and private offering of shares of Taaleem for Export Management Services for 357.8 million shares, or 49% of the shares of the company issued at a price of 5, 75 pounds per share, with a total value of approximately 2.1 billion pounds, split between a public offering of 17.9 million shares representing 5% of the total shares offered for sale, which represents 2.45 % of the company’s total issued shares, and a private placement of 339.9 million shares, representing 95% of the number of shares offered for sale, representing 46.55% of the total issued shares of the society.

According to what the company has announced, trading in the company’s shares will begin next Wednesday, becoming the first company to be listed and listed on the Egyptian Stock Exchange in 2021.

The Renaissance Dam dossier

In this context, Wael Enaba, head of the financial consultancy firm Al-Awael, in an interview with Al-Arabiya, attributed the reason for the sharp drop in the Egyptian Stock Exchange since last March to several factors, in particular policies related to the negotiations on the Renaissance Dam dossier, and this is what prompted some investors to withdraw from the market until the vision became clear.

As for the second reason, it is purely “technical” for the Egyptian Stock Exchange, which is the intense speculation that has taken place on EGX70 over the past six months, which has led to a significant rise in some stocks, so when there was a wave of profit taking, the sell off took place in a violent manner which resulted in the Egyptian stock market falling sharply.

In turn, the director of transactions of local institutions at Al-Rowad Securities Brokerage Company, Muhammad Kamal, said in an interview with Al-Arabiya that the market index rose from a strong barrier of resistance to the 10200 level. after a short period of breath in the past. weeks.

He added that the market’s loss of this stubborn barrier of resistance is accompanied by an exaggerated and unjustified fear of individuals to close their positions to buy on margin, referring to a meeting that could lead to a change in the mechanisms of trading. ‘buying on margin to ensure that no pressure on the market.

He explained that individuals are exaggerating their fear of geopolitical developments towards the Renaissance dam, and that the market is under pressure from overseas sales, and the downturn is exacerbated by calling centers to buy at the margin.

Foreign investors

Transactions of Arab investors tended to buy with a net worth of 281,700 pounds, while transactions of Egyptian and foreign investors tended to sell with a net of 136.19 thousand pounds and 145.54 thousand pounds, respectively.

Meanwhile, the value of transactions in listed shares reached 31.07 million pounds, through 26.6 million shares, through 1.7 thousand transactions.

In a related context, the Egyptian Stock Exchange Administration announced that it would suspend trading of 9 shares for a period of 10 minutes, as they exceeded 5%, up or down, during the first half hour of negotiation.

Where it was decided to suspend trading in the shares of Atlas for Investment and Food Industries, Ismailia Egypt for Poultry, Medical Packaging, Emerald Real Estate Investment, Egyptian Housing, Development and Reconstruction, Al Arabiya for Valves, the Arab Company for Asset Management and Development, the general for porcelain and Chinese products, Amer Group Holding.