EGX’s Early Sharp Decline Triggered By Morsi’s Constitutional Declaration: Expert

Mohamed Gaballah, Finance and operation Manager at Arab Finance Brokerage company, has attributed the Egyptian Exchange’s Sunday sharp decline to the domestic division over President Mohamed Morsi’s new constitutional declaration issued last Thursday.

Gaballah further told CBC local channel that Morsi’s constitutional decree has sharply divided the country into supporters and opponents triggering controversies among political parties and the general public  which in return have heighten the political tensions.

Accordingly, the investors have been in a state of panic and fear recalling the EGX’s drastic decline before the outbreak of the 25th January revolution, he added.

Gaballah noted that the Egyptian investors are more worried than Arabs and non-Arab foreigners.

The EGX administration has decided earlier Sunday to halt the EGX trading for half an hour till 11:01 a.m. (09:01 GMT) as the indices’ losses exceeded 5%.

The main index, EGX30 dived by 6% to 5112.7  p. EGX20 fell by 6.52% to 5818.24 pts. The mid- and small-cap index, the EGX70 sank by 4.68% to 458.41 p.pts.  Price index EGX100 pushed down by 5.01% to 766.38 p.

After a 30-minute suspension, the Egyptian Exchange (EGX) has resumed trading reporting losses of EGP 25 billion as the capital market has amounted to EGP 347.991 billion, according to data compiled by Amwal Al Ghad at 11:46 a.m. Cairo time (09:46 GMT).