EGX records semi-collective regression after 1hr of trading



Sun, 21 Oct 2018 - 10:08 GMT


Sun, 21 Oct 2018 - 10:08 GMT

FILE - Employees in the EGX following performance of the trading session on December 12, 2017

FILE - Employees in the EGX following performance of the trading session on December 12, 2017

CAIRO – 21 October 2018: The Egyptian Exchange (EGX) witnessed a semi-collective regression after an hour of trading on Sunday, Oct. 21, representing a first feedback after the Egyptian government's announcement of delaying the offering of Eastern Company's shares on EGX.

The benchmark EGX30 dropped 1.40 percent by 11:11 a.m. (Cairo time), reaching 13,453.65 points.

The equally weight EGX50 also declined 1.31 percent, hitting levels of 2,099.11 points and the broader index EGX100 dipped 0.14 percent to 1,737.54 points.

On the other hand, the small and mid-cap index EGX70 rose 0.09 percent, achieving levels of 691.74 points.

The committee of the governmental initial public offering (IPO) announced Thursday, Oct. 18 that it would delay the offering of 4.5 percent of Eastern Company’s shares in light of the global markets volatility.

It clarified in a statement that the reason behind the delay of the offering is that current price of Eastern Company share is out of the price range the government decided ranging 10 percent less or more of the average of the closing price during a month earlier of the announcement of investment banks promoting the offering.

In 2016, Egypt announced the launch of the government’s IPO program to offer shares over three to five years in several state-owned companies in fields such as petroleum, services, chemicals and real estate.

The government aims at offering 15-30 stakes of some state-owned companies on the stock exchange (EGX) to increase funding to Egyptian companies, maximize the benefit from state assets, and to attract local and foreign capital flows to Egypt.

Market capitalization recorded LE 760.46 billion within this time of Sunday’s session, losing around LE 6.49 billion, as it ended Thursday’s session at LE 766.95 billion.

On Thursday, Market capitalization lost LE 6.97 billion, recording LE 766.95 billion, compared to LE 773.93 billion in Wednesday’s session.

EGX ended Thursday’s session in red, as EGX30 decreased 1.24 percent, EGX50 inched down 1.05 percent, EGX70 shrank 0.19 percent, and EGX100 lessened 0.40 percent.

Minister of Finance Mohamed Ma’it said in September that Egypt’s IPO program will start floating an additional stake of the Eastern Company's shares on the Egyptian Exchange (EGX), which amounts to 4.5 percent of the company’s shares.

The minister expected the yields of the offering to reach LE 2 billion, noting that the timing of the offering will be determined in cooperation with EFG Hermes.



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