The Egyptian stock market indices continued to drop for the fourth consecutive day, reportedly affected by the Greek economic crisis, the drop in China’s capital market and domestic fears of militant attacks.
On Wednesday, the stock market’s main index EGX-30 dropped by 2.6%, registering 7550.98 points. The capped index EGX-20 slumped by 1.99%, marking 7665.72 points. The EGX-70 index, which represents small and medium enterprises, has decreased by 1.55%, while the broader EGX-100 inched down by 1.69%, recording 873.61 points.
The value of stock market losses on Wednesday amounted to EGP 6.427bn, up from the EGP 4.88bn losses incurred the previous day.
Wael Ziada, Head of research at EFG Hermes, said there are several reasons behind the stock market’s decline. These are most prominently last week’s terror attacks in North Sinai, and the EGX’s recent move to provide the return value of global depositary receipts (GDRs) in Egyptian pounds instead of dollars, which he said affected the trading of many listed companies.
Ziada expects the decline to last no more than one week.
He also added that the Greek economic crisis is also affecting the global economic scene. On Sunday night, Greece held a referendum that received a 60% “No” votes on applying additional austerity measures, which was the main demand of the International Monetary Fund (IMF) and Germany. Reports on the Greek economic crisis, the drop in China’s capital market, and the domestic fears of militant attacks continue to affect the Egyptian stock market, with the main index declining for the fourth consecutive day.