The Egyptian capital market lost EGP 12.4bn Monday, marking the second biggest loss this week. Decline in oil prices has pushed many international capital markets to losses, particularly in countries that depend on oil sales as a main source of revenues.
The benchmark index EGX-30 slumped by 3.58% to register 8515.66 points, while the broader index EGX-100 declined by 4.35%, reaching 554.53. The small and medium enterprises EGX-70 inched down by 2.84%.
The trading day closed with 158 decliners, 14 gainers and 12 unchanged.
Foreign investors’ market behaviour was more inclined to selling, while Arab and Egyptian investors were more interested in buying stock. A purchasing behaviour was noticed among individuals while institutions sought to sell stocks.
Crude oil prices have plummeted to their lowest level in five years amid expectations of increased oil market supply cited by Morgan Stanley, which lowered its 2015 forecast for Brent Crude.
The market loss sequence started on 9 December, and continued through the 10 and 11 December, with the market experiencing its most significant loss on Sunday. A minimal rebound was witnessed on Monday, with the market gaining almost EGP 6bn.
Capital markets in the US, Asia, Russia and the Gulf all experienced these losses at different ratios.