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Republican Guard headquarters violence prompts market slide - Daily News Egypt

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Republican Guard headquarters violence prompts market slide

The EGX 70, an index of small and medium-sized companies,declined by a precipitous 5.32%, while the broader EGX 100 slid 4%.


An injured man brought for medical treatment following Republican Guards clashes between pro-Morsi protesters and the armed forces  (AFP PHOTO/STR)
An injured man brought for medical treatment following Republican Guards clashes between pro-Morsi protesters and the armed forces
(AFP PHOTO/STR)

The EGX 30, Egypt’s benchmark index,plummeted3.55% after days of gainsto end Monday’s trading session in the red following violence at the Republican Guard headquarters early Monday.

According to health ministry officials, about 51 people were killed and 435 injured, mostly supporters of deposed president Mohamed Morsi, in clashes at the Republican Guards headquarters in Nasr City.

The EGX 70, an index of small and medium-sized companies,declined by a precipitous 5.32%, while the broader EGX 100 slid 4%.

“It’s feedback from current political unrest, as investor optimism after Morsi’s ouster tuned to worries and concerns,” said EissaFathy, deputy head of securities division at the Federation of Chambers of Commerce.

Fathy pointed out that the stock market is highly sensitive tointermittent turmoil and investor reactions.

“For instance, last Thursdayafter the army’s statement which bootedformer president Mohamed Morsi, the benchmark index gained huge profits and soared to levels  that haven’t occurred in a long time,” he said.

At the beginning of Thursday’s session,the market halted trading for half an hour after stocks hit the daily maximum percentage rise in the first few minutes of trading.

On Sunday, the market opened on a high, riding a wave of optimism following Morsi’s ouster, market experts claimed.

Yasser El-Masry, deputy head of the Arab African International Securities,emphasised that investors, especially non-Egyptians, base their transactions on the ongoing political developments.

“Investors are worried about what happened today, regardlessof who was really responsible for it.”

The stock exchange announced in a press statement that trading of the benchmark during the holy month of Ramadan will be from 10am to 1.30pm, rather than 2.30pm

 

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