Egypt Watch

Losses in Egypt stock exchange due to geopolitical tension

January 6, 2020

Egyptian stock exchange indices retreated during Sunday dealings by
more than 4 per cent, affected by the dealers’ wide-range sales
operations that included most of the market shares.
Analysts attributed wide-range sales to geopolitical tension in the
Middle East and the Arab Gulf region.
The Turkish Army’s movement towards Libya and Iran’s crisis with the
USA have put pressure on the market in addition to the negative
influence resulting from the investment funds’ tendency to buy gold as a
safe solution in such situations.
During Sunday’s session, the main index of the Egyptian stock exchange
(EGX30) fell by 4.13 per cent reaching a level of 13325.89 points. The
EGX70 SMB Index fell 3.98 per cent to 515.28 points, and the wider
EGX100 index lost 4.15 per cent to 13.40.9 points.
The session witnessed the suspension of trading on a big group of shares
because its losses exceeded the maximum drop rate in the session which
is 5 per cent.