The Egyptian Exchange (EGX) continued its losses during mid-session of Tuesday, losing more than LE 12 billion of market capitalization, unlike expectations, after cutting 3 percent of interest rates on Monday.
The Monetary Policy Committee of the Central Bank of Egypt (CBE) decided on Monday to cut the overnight deposit rate, the overnight lending rate, and the rate of the main operation in an emergency meeting by 300 basis points.
The overnight deposit rate, the overnight lending rate, and the rate of the main operation are cut to reach 9.25 percent, 10.25 percent, and 9.75 percent, respectively.
Moreover, credit and discount rates are cut at 9.75 percent from 12.75 percent.
By 12 PM Cairo time, the benchmark EGX 30 lessened 2.01 percent, to reach levels of 9,239 points.
The small and mid-cap index EGX 70 decreased 5.04 percent, to reach levels of 900.79 points, and the broader index EGX 100 declined 3.8 percent, to 984.8 points.
Market capitalization lost LE 12.22 billion, recording LE 515.6 billion, compared to LE 527.83 billion in Monday’s session.
On Monday’s session, EGX flagged in red for the second session in row, as EGX 30 lessened 7.09 percent, EGX 50 dipped 6.82 percent, EGX 70 decreased 6.58 percent, and EGX 100 declined 6.05 percent.