Investor panic in Sunday’s trading

The Egyptian stock market fell sharply during Sunday's session, indicating investors’ panic from the escalating unprecedented violence and lawlessness throughout Egypt. Hundreds of people were killed in a crackdown by the military-backed government on supporters of ousted President Mohamed Morsi.

The main equities index, EGX30, was down by 3.87% closing at 5,334 points by the end of the trading session, pulling down the yield to date value by 2.34%. The index fell below a major technical support around 5,540, where it peaked in May and July.

Gravely affected by such social and political turmoil within the country, experts believe that the loss of confidence in the financial market is a direct result of the absence of security in many areas around Cairo and other governorates in Egypt. Further, with no economic developments to support the performance of the stock market in the face of a growing trend of social instability within Egypt, they believe it is unlikely that the main index to rebound until security has been restored.

On a micro level, many companies have been struggling with a decline in sales and profits, which has led to further loss in faith among investors regarding the performance of the Egyptian economy.

After coordination with the Egyptian Financial Supervisory Authority, and in accordance with the Central Bank of Egypt’s decision to decrease banking working hours, the Egyptian Stock Exchange Administration decided to trade on Sunday and Monday for just three hours, from 10:30 am to 1:30 pm.