The country’s ruling military council (SCAF) issued a declaration Sunday 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 Monday’s closing posted losses of EGP 6.94 billion as the capital market has reached EGP 314.363 billion.
The main index, EGX30 dived 3.42% to end at 4267.87 p. EGX20 sank 3.30% to close at 4822.25 p.
Meanwhile, the mid- and small-cap index, the EGX70 inched lower 1.41% to finish at 386.55 p. Price index EGX100 went down 2.05% to conclude at 663.71 p.
Traded volume reached 66.715 million securities worth EGP 215.126 million, exchanged through 14.110 thousand transactions.
This was after trading in 152 listed securities; 123 declined and 18 advanced while 11 keeping their previous levels.
Egyptians and Arabs were net buyers seizing 94.82% and 0.92% respectively, of the total markets, with a net equity of EGP 19.518 million and EGP 5.598 million excluding the deals.
On the other hand, non-Arab Foreigners were net sellers seizing 4.26% of the total markets, with a net equity of EGP 25.116 million excluding the deals.
EGX’s leading shares witnessed collective downwards led by the shares owned by Orascom Telecom Holding (OTH) (ORTE.CA) by sinking 5.78% to hit EGP 2.77. Shares owned by Orascom Construction Industries (OCIC.CA) have set for the steepest drop since October by edging down 4.80% to hit EGP 231.08. Shares of Shares of EFG-Hermes Holding (HRHO.CA) had poised for the lowest close since July 2005 by going down 3.70% to reach EGP 9.62.
Additionally, shares of Commercial International Bank- Egypt (COMI.CA) fell 3.35% to hit EGP 23.35. Shares of Orascom Telecom Media & Technology Holding (OTMT.CA) dipped 1.52% to reach EGP 1.30.
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 Morsi 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.
