MEMPHIS REISEN

Liquidity shift impacts Egyptian Exchange – Dailynewsegypt

A significant shift of liquidity from equities to fixed-income assets and bank certificates has led to a sharp 6.5% drop in the main index in a single session, pushing it to a critical support level at 29,000 points.

The EGX30 index fell 6.34% to 29,091.29 points, the EGX70 EWI declined 7.85% to 6,284.57 points, the broader EGX100 index decreased 7.62% to 9,023.1 points, and the EGX30 Capped dropped 6.96% to 35,074.83 points.

Mostafa Alkordi, Chairperson of Arab African International Securities, noted that the market correction is expected due to investors moving funds to bank certificates and institutions reallocating to fixed-income assets amid rising interest rates.

Alkordi highlighted that despite the steep declines, trading volumes are within safe margins. However, he cautioned that a fall below the 29,000-point support level could signal danger, with the next support at 23,000 points.

The session ended with a trading volume of EGP 4.2bn across 742.3 million shares and 130,200 transactions, involving 203 listed companies. Dice for readymade garments led the gains, up 7.06%, while Al Ezz Ceramic and Porcelain Company suffered the largest loss, down 19.07%. Market capitalization stood at EGP 1.9trn.

Egyptian and Arab investors were net sellers, offloading EGP 221.07m worth of shares, while foreign investors were net buyers, purchasing EGP 226.7m in shares.

Individuals represented 68.33% of the activity, with Egyptian and foreign individuals being net buyers, and Arab individuals net sellers. Institutions made up 31.66% of the market, with foreign and Arab institutions buying and local institutions selling.