CAIRO: The Egyptian Exchange (EGX) plummeted in August trading sessions, and its market capitalization shed around 52.8 billion EGP ($6.7 billion,) according to its monthly report.
The benchmark index EGX30 plunged 11.46 percent to end August at 7,252 points, down from 8,192 points at July-end.
Similarly, the small and mid-cap index sank 14.5 percent, ending August at 392.4 points, compared to 459 points a month earlier. The broader index EGX100 also slipped 11.27 percent to close the month at 837.7 points, down from 944 points at July-end.
Egypt’s market tumbled during most of August’s sessions, tracing global stock markets’ sharp slips amid fears about an imminent China-led economic slowdown, coupled with fresh slips of oil prices.
The EGX was also hurt dramatically by the Saudi stock market’s slump following a decision by Fitch Ratings to downgrade its outlook for the kingdom from “stable” to “negative,” citing lower oil prices.
Locally, the market was battered by freezing the assets of the chairman of Juhayna Food Industries, Safwan Thabet, on alleged ties to the Muslim Brotherhood. Additionally, the Egyptian Competition Authority has referred Oriental Weavers to the attorney general on accusation of “monopolistic practices.”