EGX loses over EGP 10bn due to panic selling in CIB shares

CIB price falls by 10%, but purchases by local portfolios and funds offset stock’s value loss to 6.9%

Alyaa Stohy October 25, 2020

A general view of the Egyptian Exchange (EGX) in Cairo August 18, 2013. Egypt's stock market fell sharply on Sunday as it resumed trading after hundreds of people were killed in a crackdown by the army-backed government on supporters of the Muslim Brotherhood. Banks and the stock market reopened for the first time since Wednesday's carnage, with shares rapidly falling 2.5 percent.

The Egyptian Exchange (EGX) fell by 3.5%, at the end of Sunday’s trading session, with its market capitalisation losing over EGP 10bn.

The blue-chip index EGX30 decreased to the 10,602 points level, driven by panic selling of Commercial International Bank – Egypt (CIB) shares. This caused a severe decline in the stock value, estimated at 10% at the beginning of the trading session.

However, purchases made by local portfolios and funds offset the stock’s value loss, to end the session at a 6.9% decline reaching EGP 61.83 per share, with a trading value of EGP 215.88m.

In parallel, the EGX started its dealings with a 5% decline, but it experienced a rebound thanks to a final wave of purchases.

The EGX resumed trading on CIB shares as of Sunday, after suspending them last week due to the resignation of the bank’s chairperson.