As Egypt's interim government attempts to restore order, the country's economy is quickly unraveling.
American journalist Kimberly Adams comments on the current situation on the grounds in Cairo. "Nobody's out selling corn on the cob, nobody's selling flowers, nothing. And then when it comes to bigger segments of the economy, like banks and the stock exchange, the banks shut down early today because of the violence, the stock exchange is going to be closed tomorrow," Adams said in an interview with online newsite 'Marketplace'.
EGX 30 index closed with a 1.75% decrease yesterday, as reported by Bloomberg. Eurobonds climbed 22 basis points to a 9% yield, a record high since July 9. USD - EGP exchange remained steady at EGP6.9889 to USD1. In order to avoid a possible slump in the stock market, Noah Capital Markets EMEA cut their Eqyptian equities and sold them. Orascom Telecom Holding SAE experienced a 2.8% rise on low volume.
The bourse disclosed in a statement that trading on EGX will resume August 18. Noah Capital Markets'Emad Mostaque is foreseeing a negative aura among local investors. "We now believe that things in Egypt have the strong potential of getting much worse," the strategist said.
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