The Egyptian Exchange (EGX) closed Tuesday\u2019s trading session on a negative note witnessing a sever collapse for the first time in 8 months, pressured by Arab and foreign selloffs.<\/p>\n
The main EGX30 index fell by 0.63 percent to 10,471 points, while the EGX70 EWI plunged by 5.1 percent to 1,822 points.<\/p>\n
Likewise, the EGX100 EWI retreated by 3.72 percent to 2,739 points, whereas the EGX50 EWI declined by 3.47 percent to 1,923 points.<\/p>\n
The market cap value dropped by 7.56 billion Egyptian pounds to close at\u00a0 633.65 billion pounds on Tuesday down from 641.21 billion pounds on Monday.<\/p>\n
Yasser El-Masry, Managing Director at the Arab African International Securities, said the decline began with a profit-taking wave that left a slight decline.<\/p>\n
This was then followed by a state of panic by individuals, leading to further declines. This came on the back of the trend set by brokerage firms to close the marginal positions of the Dice stocks, followed by \u201cMargin Call\u201d on the remaining securities.<\/p>\n
El-Masry added that this is called the \u201cdomino effect\u201d, especially as Dice stocks have acquired a large share of trading in the last period. He pointed out that the vision held by investors is illogical in approaching this sector.<\/p>\n
There are other stocks, such as Fawry and B Investments, with the e-payments sector being the racehorse everyone\u2019s betting on in 2021.<\/p>\n
The margin system allows the customer to buy a security by paying a part of its value in cash, while the rest is paid by a loan from the brokerage company which deals with a guarantee on the securities.<\/p>\n
Large number of dealers turned to this system in light of the great decline in liquidity, which prompted the use of the margin purchase mechanism or what is known as “margin”, to finance their trading in the market.<\/p>\n","protected":false},"excerpt":{"rendered":"
The Egyptian Exchange (EGX) closed Tuesday\u2019s trading session on a negative note witnessing a sever collapse for the first time in 8 months, pressured by Arab and foreign selloffs.<\/p>\n","protected":false},"author":4,"featured_media":319984,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[23],"tags":[127],"class_list":["post-321617","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-money-markets","tag-egx"],"yoast_head":"\n