Egypt's Stock Market Suspend Trading on Sunday
Trading on Egypt’s
stock exchange halted on Sunday after the EGX 100 dropped by 5 percent. The fall
according to analysts is linked to protests which broke out in Cairo and
other cities over the weekend.
It is the first
suspension since 2016, when Egypt embarked on a three-year economic reform
programme that obtained the backing of the International Monetary Fund. It
led to the devalution of the Egyptian Pound and undertaking austerity
measures.
When trading was
suspended shortly after 1030 GMT, stocks such as Orascom Investment had
fallen by 9.89 percent, Ezz Steel sank by 9.91 percent and Pioneers had
dropped 9.65 percent. Orascom Construction fell by 8.04 percent and Palm
Hills lost 9.63 percent.
Before the latest
selloff, Egyptian stocks had rallied this year on the back of economic growth
and a recent interest rate cut. The benchmark index is up 8 percent so far
this year.
On Friday,
hundreds of people demonstrated in central Cairo and several other Egyptian
cities against President Abdel Fattah al-Sisi, responding to an online call
for protests against government corruption, witnesses said.
Small protests
also took place in the city of Suez late on Saturday. On Sunday Al Arbaeen
square, where riot police had fired tear gas at protesters, was closed to
traffic, witnesses said.
Egypt’s economic
reform programme has won praise from economists and helped reduce the current
account and budget deficits. In 2016 the index was suspended for a 5 percent rise as
investor confidence returned at the start of the reform programme.
But austerity
measures including the introduction of a value added tax and higher energy
prices have increased pressure on Egyptians, many of whom live in poverty.
Political protests
have become rare due to a broad crackdown on dissent under Sisi, whose
popularity has been dented by the austerity measures.
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