Prime Egyptian stock index trades near 6-year low

A trader works at the Egyptian stock exchange in Cairo, Egypt September 23, 2019. REUTERS/Mohamed Abd El Ghany

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CAIRO, July 6 (Reuters) – Egypt’s blue-chip index (.EGX30) hit a new nearly six-year low on Wednesday before recovering slightly later, a day before inflation data was released of June.

The index is down 27.44% so far this year, after falling 3.6% to 8,642 on Monday, its lowest since November 2016.

On Wednesday morning, the index fell 0.44% to 8,619 points, pulled down mainly by banking stocks. Later in the session, it recovered to end up 0.15% at 8,670 points.

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Analysts blamed rising prices, interest rate hikes and fears about the global economic outlook for the stock market losses.

Egypt has been under financial pressure due to a sharp decline in foreign investor holdings and rising costs of key commodity imports, particularly since Russia’s invasion of Ukraine. Headline inflation accelerated to 13.5% in May.

“This is due to many challenges ranging from hard currency tightening and investment outflows in addition to Fed rate hikes, so there has been continued selling over the past period,” Ehab Said said. , financial market analyst and former board member of the Egyptian Stock Exchange.

“The normal trend is down unless something new emerges,” he added.

On Wednesday’s EGX30, Credit Agricole Egypt and Cleopatra Hospital Company fell the most, losing 4.55% and 4.09% respectively, followed by E-finance, which finished down 3.45%. The main gainers were GB Auto, El Sewedy Electric and EFG Hermes, up 9.96%, 6.44% and 3.99% respectively.

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Reporting by Mahmoud Salama; Editing by Aidan Lewis and Shailesh Kuber

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