Amwal Al Ghad English - 2015-05-17 14:47:39
Egypt’s stock market extended losses Sunday on concerns that it might lose emerging market status. Although, the bourse edged up in early trade on news that Standard and Poor's had revised its outlook on Egypt's sovereign debt rating to positive, it eventually ended with losses worth 960 million Egyptian pounds (US$126 million).
The losses were driven by a broad sell-off from local and Arab investors on speculation that MSCI, which last week excluded Telecom Egypt from its emerging markets index, might eventually drop Egypt from the benchmark completely.
Morgan Stanley Commercial Index threatened the Egyptian Stock Exchange (EGX) with deletion from its emerging markets index, after removing Telecom Egypt Company from its index, according to a statement.
"We may lead to Egypt being removed from the index if it continues with its poor performance," MSCI said in a statement on its website.
Only three Egyptian stocks remain in the index, which is the minimum required to maintain a presence in the emerging markets index, according to MSCI rules published on its website. MSCI did not respond to an emailed request for comment.
Egypt’s benchmark index, EGX30 dropped by 0.51 percent to a fresh five-month low of 8260.92 points, approaching strong technical support at 8,125 points, its December low. EGX20 went down by 0.34 percent to 8472.18 points.
In addition, the mid- and small-cap index EGX70 fell by 0.73 percent to 436.49 points. The price index, EGX100 sagged by 0.34 percent to 920.28 points.
The market capitalization has hit 481.272 billion pounds during the closing session of Sunday.
Turnovers higher On Sunday, the bourse’s trading volume has recorded 158.938 million securities, with turnovers closed at EGP 1.073 billion, exchanged through 16.481 thousand transactions.
Also during the closing session, 169 listed securities have been traded in; 87 declined, 50 advanced; while 29 kept their previous levels. More»