Cairo-Mubasher: The Egyptian Exchange (EGX) fell in February and lost around EGP 15.62 billion ($2 billion) of its capitalization, amid broad sell-offs to book gains.
The benchmark index EGX30 drifted 5.17% or 509 points lower to 9334.01 points, while the small and mid-cap index EGX70 lost 3.2% or 18.5 points to 558 points. The broader index EGX100 sagged 2.67% or 30.6 points to 1114.42 points.
Traders took profit in February after the record leaps seen in January, said Mohamed Al-Aasar, head of research, NBK.
Egypt’s stock market had advanced 10.3% in January, thus marking its biggest monthly gain in one and a half years, as the benchmark soared to its highest level in six years and seven months.
Declining stocks included Sharm Dreams, Gharbia Islamic, Shorouk Printing, KIMA, South Cairo Flour Mills, Beltone an Global Telecom that retreated by between 14% and 25.6%.
Speaking to Anadolu Agency, Al-Aasar added that Egypt’s airstrike against ISIS targets in Libya triggered investor worries about possible escalation.
EGX is expected to near previous historic peak at 12000 level by the end of this year or early next year. This peak had been reached in 2008 after which the bourse was battered by the global financial turmoil, according to the analyst.
The analyst defined the main target for EGX30 this year between 11600-11800 points, adding that, upon reaching such a target, the bourse will see strong profit taking then resume the rally towards 12000 points.
He also expected EGX30 to hit 10800 points before the country’s economic summit in March, amid continued positive catalysts.
The market’s heaviest weight CIB was the top active with turnover exceeding EGP 1.3 billion. The stock rose 1.23% to EPG 55.88, after soaring to a lifetime high of EPG 57.45.
Meanwhile, OTMT was the most active with traded volume exceeding 664 million shares. The stock fell by 4.6%. The company said on Monday it reached an agreement with Orange to sell its equity in mobile operator Mobinil in a 209.6 million euro deal.
Translated by Sayed Abdel Rahman
