Egyptian Stock Exchange Chairman Mohamed Farid described the stock market declines during the first three sessions this week as "an unjustified reaction and has no meaning on the level of capital markets."
Farid's comments came after Egypt's main index lost more than 10% in the first three sessions this week, following protests in a number of Egyptian cities.
Egyptian shares suffered heavy losses of around 66 billion pounds ($ 4 billion) of their market value during the sessions on Sunday, Monday and Tuesday, with the main index falling to its lowest level since the beginning of August.
The main index fell about 11%, but the market halted losses in Wednesday's session and rose 3.2%.
Foreign investors were net buyers of EGP 16 bn in shares from November 2016 to Tuesday, September 24, while their purchases of treasury bonds totaled EGP 36 bn in the same period, Farid said in a television interview.
The net profit of listed companies reached 62 billion pounds in 2018 compared to 56.7 billion in 2017, the chairman added.
The number of companies listed on the Egyptian Stock Exchange and the Nile Stock Exchange for small companies about 250 companies.
The number of investors with "codes" that allow the right to deal in the market about 500 thousand investors, but the number of investors active in the market between 80 and 100,000 investors only.
"Stock markets are not being valued today," he said, adding that what would happen in the coming sessions "is left to the forces of supply and demand in the capital market."
The sharp declines in Sunday's session led to a 30-minute suspension of trading in the Egyptian market for the first time since November 2016.
Marwan al-Sharashabi, head of asset management at Al Fajer Financial Advisors, said yesterday that Egyptian shares fell during the sessions on Sunday, Monday and Tuesday in light of the uncertain political scene and the absence of assurances from market-based bodies.
He called for the need for intervention by officials of the stock exchange and the Financial Supervisory Authority to reassure dealers, and end the state of panic controlling transactions, according to the Anatolia News Agency.