The country’s ruling military council (SCAF) issued a declaration yesterday after polls closed in the post-revolution election, giving itself sole authority over its affairs, including the budget and personnel. It also acquired the power to name the 100-member committee that will draft a new constitution, and objection rights to any articles drafted that are deemed “counter to national security interests.”
Consequently, the Egyptian Exchange (EGX) had on mid-Monday posted losses of EGP 4.335 billion as the capital market has reached EGP 316.974 billion, according to data compiled by Amwal Al Ghad at 10:34 GMT (12:34 pm local time).
The main index, EGX30 dived 2.16% to hit 4323.66 p. EGX20 sank 1.84% to reach 4895.06 p.
Meanwhile, the mid- and small-cap index, the EGX70 inched lower 0.38% to hit 390.56 p. Price index EGX100 went down 1.15% to reach 669.8 p.
Traded volume reached 31.319 million securities worth EGP 90.393 million, exchanged through 5.686 thousand transactions.
This was after trading in 115 listed securities; 77 declined and 20 advanced while 18 keeping their previous levels.
Non-Arab Foreigners and Arabs were net sellers seizing 5.07% and 1.19% respectively, of the total markets, with a net equity of EGP 13.282 million and EGP 1.794 million excluding the deals.
On the other hand, Egyptians were net buyers seizing 93.74% of the total markets, with a net equity of EGP 15.076 million excluding the deals.
EGX’s leading shares witnessed collective downwards led by the shares owned by Orascom Construction Industries (OCIC.CA) which set for the steepest drop since October by edging down 4.84% to hit EGP 231.00. Shares of Orascom Telecom Holding (OTH) (ORTE.CA) sagged 4.76% to hit EGP 2.80. Shares of EFG-Hermes Holding (HRHO.CA) had poised for the lowest close since July 2005 by going down 3.40% to reach EGP 9.65.
Additionally, shares of Commercial International Bank- Egypt (COMI.CA) fell 3.15% to hit EGP 23.40. Shares of Orascom Telecom Media & Technology Holding (OTMT.CA) dipped 2.27% to reach EGP 1.29.
The market is down “on the back of the military’s announcement, which puts Egypt in an open-ended transition period,” said Wafik Dawood, director of institutional sales desk at Cairo-based Mega Investments Securities.
“If Mursi really wins you are heading towards a potential clash with the legislative power, the military council. Assuming Shafik wins, the streets are going to consider it a reversal of the revolution.”
The military’s announcement came hours before the Muslim Brotherhood said its candidate Mohamed Morsi beat Ahmed Shafik, Hosni Mubarak’s last prime minister in Egypt’s first free presidential election. Shafik’s campaign has disputed the count. Official results of the election are due by June 21.
The Brotherhood and its Freedom and Justice Party (FJP) will join a mass protest planned for tomorrow against the military’s declaration, Hazim Farouk, a party leader, said on the group’s Facebook page.
