Egypt stock market continues to plunge amid political, economic uncertainty

The Egyptian stock market plummeted over the past seven months, with losses reaching 122.5 billion Egyptian pounds (around $7.7 billion), as the country’s economy suffers from Covid-19 closures, tensions over the Ethiopian dam and talk about the possibility of military intervention in Libya.

The EGX30 share index for small and medium cap stocks dropped 1.5 per cent in July compared to June. Since the beginning of the year, the index plunged 24 per cent, according to Al-Araby Al-Jadeed.

The Egyptian stock market cap lost 4.5 billion Egyptian pounds ($0.28 billion) in one month from June to July.

Political uncertainty looms in Egypt after President Abdel Fattah Al-Sisi warned in June that his country could intervene in Libya in support of the country’s eastern-based military leader Khalifa Haftar, whose Libyan National Army (LNA) has recently incurred losses at the hands of forces loyal to the internationally recognised Government of National Accord (GNA).

READ: Egypt activists blame Sisi for failure in dam negotiations