Monday,23 October, 2017
Current issue | Issue 1123, 22-28 November 2012-
Monday,23 October, 2017
Issue 1123, 22-28 November 2012-

Ahram Weekly

Crash across the board

in
in
Al-Ahram Weekly

 

The Egyptian stock market’s main index lost 9.6 per cent of its value in Sunday transactions amid heightening political tension ignited by President Mohamed Morsi’s decision to expand his powers.

The exchange had suspended trade for 30 minutes soon after the start of the session as stocks plummeted stripping the index of more than five per cent, the maximum allowed limit for decline in a single session.

“The session witnessed a complete crash across the board with all shares losing ground. The first half hour saw the bluechips shedding up to 10 per cent of their value,” said Mohamed Radwan, head of foreign trading at Pharos Securities. 

Cairo’s downtown streets, a few kilometres from the Stock exchange premises, are witnessing clashes between police and activists protesting against Morsi’s decree to shield his decisions from judicial oversight.

Radwan said that the political scene is scary for investors, both local and foreigners, as the country is back to square one, politically and socially.

“We, market analysts, were not looking today to the nationality of those giving selling orders, as everyone is selling,” said Radwan.

Even after resumption of the session the market kept heading south. By the end of the day the index settled at 4,917 points — its lowest level in 20 months.

According to Radwan, the market will maintain a downward trend tomorrow, in anticipation of Tuesday’s marches.” Tuesday will be the most decisive session of the coming period.

On Tuesday, the Muslim Brotherhood, supporting Morsi’s decision, and critics to his move will organise protests in the downtown area.

 

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