The Egyptian stocks have experienced the first decline within the last 4 days mainly because of the concern that the Egyptian Government will not be able to revive the economic growth of this African country. Based on the initial results declared, the draft constitution is most likely to win, however, this news has not been able to make any impact on the stock market, as of yet.
The benchmark index of the country, EGX 30 has plummeted by 1.5% and is at 5362.16 currently. This marks its biggest retreat since 10th December. In 2012, the index has surged by 48% on a whole which is the sharpest rally for this index within the last 6 years. The volume of share exchanges was 50% more than the average of last 10 days, according to the statistics. Incidentally, the GCC 200 Index which covers the biggest companies of the 6 nation gulf council also dropped by 0.2% today.
According to the Manager for Commercial International Brokerage’s North Africa and Middle East Division, Ashraf Akhnoukh, though an approval on the constitution marks stability for the country theoretically, in reality, the economy is still a big challenge for the Government and investors are concerned on Government’s ability to stimulus the growth.
Coming to individual stocks, a renowned luxury real estate developer of Egypt, Palm Hills Developments SAE tumbled the most since 6th December. It actually dropped by 2.8% and is at 2.45 Egyptian Pounds per share now. On the other hand, Egypt’s famous mobile phone operator, Orascom Telecom Holding also plummeted by 2.1% and is currently at 3.82 Egyptian Pounds per share.
Egypt’s growth may average around 3% over the next 3 years, as predicted by most of the economists. Incidentally, Egyptian Pound, the major currency is also being traded at its lowest level since 2004. The country is struggling hard to stem the decline in the national foreign-currency reserves, as the same has dropped by 58% since the uprising that was held last year.
When it comes to the middle-east countries, DFM Index of Dubai increased by 0.4%. The ADX General Index of Abu Dhabi surged by 0.5%, whereas, MSM30 Index of Oman and Bahrain’s benchmark index showed growth of 0.3% and 0.7% respectively. The Tadawul Index of Saudi Arabia, however, saw a drop of 0.2%.