The Clap
The EGX recorded large losses in yesterday’s session with the EGX30 falling by 3.13%, and the EGX70 index falling by 6%
What Happened
The sharp decline came as investors wait for the new interest rates that are set to be announced following the CBE’s meeting at the end of the week. US interest rates are set to be announced this week as well..
The stock market is already in a downturn since the announcement of inflation in the US, which recorded an 8.3% increase on an annual basis, in August 2022.
Inflation in Egypt was recorded at 14.6% YoY in August 2022, the highest inflation rate in 4 years.
But
On the other hand, Hany Genena, a lecturer at the American University in Cairo, told Thndr Claps that it is unlikely that this was the reason for the decline, as the expected increase in the interest rate is known to be temporary, and will come with greater flexibility in the exchange rate, in preparation for obtaining the IMF loan.
Genena said that the wave of selling that occurred reflects the market’s interest in the incomprehensible delay in reaching an agreement with the IMF for obtaining the required loan.
Why this Matters
After yesterday’s session, EGX30 lost 18.29% of its value since the beginning of 2022.
What happened to the EGX?📉
