Egypt’s Stock Market has incurred at least 5.4 billion Egyptian pounds in losses due to a new law which bans demonstrations without police approval that sparked anger across Egypt forcing many foreign investors to sell their shares and to liquidate their financial assets fearing a new wave of political instability.
The Market’s main indexes; the EGX 30 index dropped by 1.7 % to reach 6245.46 points and EGX 20 index dropped by 1.22 % to reach 7300.36 points. The majority of the Market shares have decline due to renewed fears among investors of a new wave of instability in the country.
A financial analyst explained “the new law which bans organizing demonstrations without police approval has led many investors to believe that the security forces and army could initiate operations to repress protesters which would spark a new wave of violence in the coming days. The renewed fears forced investors; especially foreign ones to sell their shares which led to an overall decline in the Market’s shares”.