The Egyptian Exchange (EGX) kept its downward on Wednesday, falling by 4.8% to close at 8,756 points, disregarding the government’s recent positive decisions of cutting capital gains tax and interest rates amid other incentives to cushion the impact of the COVID-19 outbreak on the economy.
EGX70 EWI index for small stocks also fell by 5.7% to close at 843 points.
Abo Bakr Imam, head of research at Sigma Securities Brokerage, believes the government decisions, despite their positivity, come too late, as the EGX has already fallen victim to the fast spread of the Coronavirus in the world.
The EGX management halted the trading in the last hour of Wednesday session for half an hour as the EGX100 index was dropping by 5%.
Ehab Rashad, Vice Chairperson at Mubasher Capital Holding for Financial Investments, reiterated that the decisions were not affective enough to solve the crisis because the government took so long to making the move.
He called on the government to take strong measures to support the stock market, likewise the United States and the United Arab Emirates.
Rashad stressed that the current stock prices are attractive for long-term investors, and they will not have a better investment alternative inside or outside Egypt.
Meanwhile, the EGX50 Equal Weights index recorded a decline of 5.4% to 1,188 points, while the EGX30 Capped decreased by 5.1% to close at 9,812 points, and the broader EGX100 index declined by 5% to 927 points.
The market recorded a trading value of EGP 527m, through 18,200 transactions on 168.8m shares, which ended in 14 stocks rising and 130 others falling, while 24 stocks remained unchanged. The market capitalisation settled at EGP 493.6bn.
Net dealings of Egyptians alone went towards buying with a value of EGP 169.8m, accounting for 62.2% of transactions, while net transactions of foreigners and Arabs went towards selling, recording EGP 136.1m and EGP 33.7m, accounting for 32.3% and 5.4% of transactions, respectively.
Individuals executed 37.1% of transactions, heading towards sale, with the exception of Egyptian individuals who recorded net purchase value of EGP 17.4m, while institutions seized 62.9% of trading, heading towards sale, with the exception of local institutions that registered net purchase of EGP 152.4m. Foreign and Arab institutions recorded net sale value of EGP 135.8m and EGP 31.9m, respectively.