The Egyptian Exchange (EGX) - File Photo
CAIRO – 22 May 2017: The Egyptian Exchange (EGX) lost ground at the close of Monday's trading, propelled by the unexpected decision of the Central Bank of Egypt (CBE) to hike interest rates by 200 basis points (2 percent).
In a surprise move on Sunday evening, the CBE decided to surge its overnight deposit rate to 16.75 percent from 14.75 percent and its overnight lending rate to 17.75 from 15.75 percent. This was the first similar action since the CBE raised the rates by 300 basis points the same day it free-floated the pound on November 3.
The benchmark EGX30 index dipped 2.52 percent, closing at 12,648 points.
The small and mid-cap enterprises index (EGX70) slumped 1.67 percent, standing at 581 points.
Also, the all-embracing EGX100 declined 1.81 percent, registering 1,356 points.
Meanwhile, purchase operations prevailed in transactions of local, Arab and foreign investors as well as foreign institutions.
Market capitalization lost about LE 14.9 billion ($823.2 million) totaling LE 654.99 billion. The market turnover registered LE 1.9 billion.
In Monday’s transactions, sales prevailed in transactions of foreign investors as well as local and Arab institutions, while purchase operations were reported in transactions of Egyptian and Arab investors in addition to international institutions.