After eight days of growth, EGX 30 sees slight drop

After eight consecutive days of growth, the EGX 30 has dropped by 0.59 percent on Wednesday, September 18.

This slight drop reflects a normal reaction on the part of the market after growth unseen in the period since former President Mohamed Morsi was ousted. It does not reflect worries about the political or economic situation, but is considered a good moment to sell.

The outlook from the investors nevertheless remains positive. Having lost 8.5 percent of its value in the weeks following the crackdown on pro-Morsi supporters, the EGX 30 has quickly recovered. It amounts today at just 2.3 percent below its level on August 13, the day before sit-ins calling for Morsi’s reinstatement were violently dispersed.

As usual, the EGX 70 has followed the trend set by the EGX 30 and closed on a slight loss of 0.12 percent. Meanwhile, the EGX 100 lost 0.22 percent.

However, Prime Minister Beblawy’s announcement on Wednesday afternoon that the minimum wage in the public sector will be set at LE 1200 in 2014 may affect investor confidence. Negotiations regarding the minimum wage in the private sector have been postponed until 2014.