CAIRO: The Egyptian Exchange (EGX) plunged Thursday battered by the shut of some foreign embassies over security concerns along with collective fall of Gulf markets.
The benchmark index EGX30 dropped 2.2 percent, registering 9,197 points compared to 9,404 points Wednesday. Also, the small and mid-cap EGX70 lost 2.37 percent, recording 613 points compared to 627.9 points in the last session. The broader EGX100 index declined 1.85 points as well, registering 1,132.
Market capitalization lost around 8 billion EGP, totaling 507.9 billion EGP compared to 515.9 billion EGP yesterday.
“The market extended its losing streak due to global markets’ plunge, namely Gulf markets since OPEC decided not to cut oil output,” Walid Helal, a technical analyst at El-Mokattam Securities Brokerage told The Cairo Post Thursday.
Gulf countries depend on oil as the key source on national income and the sharp price decline hurt their capital markets dramatically.
Helal added that the EGX’s dip over OPEC is based on investors’ bearish sentiment. “Meanwhile, Egypt’s economy will benefit from the price dip as the country imports oil and offers subsidized petroleum products.”
On Sunday, the U.K. and Canada both closed their embassies in Cairo over unspecified security concerns, while the Australian Foreign Ministry warned its citizens Dec. 06 of “possible terror attacks.”