Egypt stocks plunge on global and domestic turmoil

Egypt’s EGX30 stock benchmark picked up at the end of the trading day after bottoming out at 4,939 points at around one o’clock.

But that wasn’t enough to save it from heavy losses. The Bourse dropped 2.82 per cent of its value on Tuesday to reach 4,971 points, its lowest level in two months.

The struggling exchange, which has plunged 30.39 per cent since the beginning of 2011, is reacting adversely to Egyptian political unrest as well as economic turbulence in Europe and the United States.

“The Bourse rebounded at the end of the session after the SCAF [Supreme Council of the Armed Forces] statement, and investors are feeling stability again,” says Ashraf Abdel Aziz, head of institution sales at Arabia Online Securities.

The statement from Egypt’s ruling military gave a guarantee that the role of Islamist groups would be limited during the drafting a new constitution.

The midweek session reflected continued anxiety about political instability. “The main reason for consecutive drops was the ‘no’ answer from the SCAF to Egypt’s protests," adds Abdel Aziz.

The broader EGX70 witnessed a sharper decline of 3.53 per cent, adding to a total 19 per cent decline since the beginning of this year.