Egypt’s 3-hour Losses Raise Specter Of 2011 Stock Market Crash

In 3 hours, Egypt’s stock market has lost EGP 10 billion on Wednesday ahead of the closing session. The 3-hour losses raised the terrible specter of the stock market crash during January uprising in 2011.

The capital market has hit EGP 317.750 billion.

Consequently, the Egyptian Exchange’s indices were wavering on dark red notes back to more than 12-month low levels.

Benchmark EGX30 dived by 4.07% to 4651.15 p. EGX20 also sank by 4.96% to 5085.35 p.

On the other hand, the mid- and small-cap index, the EGX70 dropped by 4.21% to 353.78 p.  Price index EGX100 sagged  by 3.60% to 628.74 p.

This comes in the awake of the latest report released by the Index compiler Morgan Stanley Capital International Inc. (MSCI) in which bears a potential review of the MSCI Egypt Index for potential reclassification to frontier markets and excluding it from the emerging-market index.

MSCI: Egypt’s Potential Exclusion From Emerging Markets

Equity index provider MSCI on Tuesday said it may be forced to launch a public consultation with the investment community on a potential exclusion of the MSCI Egypt Index from the MSCI Emerging Markets Index were the situation on the Egyptian foreign exchange market to worsen.

“MSCI may be forced to launch a public consultation with the investment community on a potential exclusion of the MSCI Egypt Index from the MSCI Emerging Markets Index were the situation on the Egyptian foreign exchange market to worsen and result in the inability of international investors to repatriate their funds,” MSCI said.

The situation “could trigger a review of the MSCI Egypt Index for potential reclassification to frontier markets,” the index provider said.

Jitters About 30 June Protest

The investors in Egypt are on full alert to the calls for the June 30th protests that seek to topple the country’s president Mohamed Morsi.

A group of peaceful Egyptian youth launched a campaign entitled “Tamarod” or “Rebel” last April in order to overthrow Morsi, who came to the office in 2012. Those youth, who launched the campaign, also called for massive demonstrations in 30th June 2013 across Egypt.

Comments
Loading...