Several informal EGX-related groups launched a campaign to boycott trading in the coming period, in protest of unjustified declines during the past few trading sessions, & the state of EGX in general recently.
What’s been happening🤷♀️ Retail investors have grown frustrated with the state of the EGX recently for several reasons. The EGX has been unsettled ever since the Ministry of Finance announced the imposition of taxes on capital gains back in September, which received severe criticism from several market participants.
More recently, the FRA set restrictions on the use of margin trading for listed companies, whereby investors cannot purchase on margin more than 3% of a company’s market cap or 5% of free float shares, whichever is higher.
Social groups also expressed their anger surrounding the announcement by the EGX & FRA, who increased the limit on the temporary suspension of the EGX100 from 5% to 10% mid-session, immediately after the EGX100 fell by 5% three weeks ago.
Adding fuel to the fire is a string of canceled transactions on stocks that rose significantly in intraday trading, while stocks that fell significantly were left untouched.
The EGX30 daily traded value has declined by 66% reaching EGP 196M yesterday vs trading last Sunday.
What’s next🤔 We’ll be closely monitoring any advancements in the next few days, maybe weeks. You’ll find updates as the news develops, right in your inbox every morning.
