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Monday, 19 September 2022

The EGX sell-off continues

EGX WATCH: Egyptian shares suffered their biggest single-day loss since early July yesterday amid growing investor concerns about global growth. The benchmark index fell 3.1% during trading yesterday to reach its lowest level in seven weeks, leaving it down more than 18% year-to-date. The broader EGX70 index was harder hit, losing 6.8%.

Leading the declines: The sell-off was broad-based, with only five of the 30 companies in the EGX30 finishing in the green. Fawry shares were hardest hit, ending the day 9.1% in the red and leaving them down more than 48% since the start of the year. GB Auto (-8.7%) and Heliopolis Housing (-8.4%) also suffered heavy losses.

Reversing the rally: The EGX30 has now fallen 6.4% across a four-day losing streak, paring much of the gains seen in recent weeks. The index has staged a modest recovery over the past 2.5 months after hitting its lowest level since November 2016 in early July.

It wasn’t just us: Gulf stocks also fell yesterday as investors priced in the impact of a global recession on oil prices, which earlier this month dropped to the lowest levels since the start of the war in Ukraine. Saudi Arabia’s benchmark index fell 2.2% and shares in Qatar ended the day down 1.2%.

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