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.   Stock Exchange of Egypt Source : Reuters 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.