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Anti-Mursi protests to weigh on Egypt bourse

Published: Updated:

Plans for mass protests against President Mohamed Mursi will weigh on Egypt’s bourse on Sunday, because of fears they could result in worse violence after several people were killed and hundreds wounded in the last few days.

The Egyptian index, which last closed at 4,685 points, is already down 14 percent so far this year and late last week showed tentative signs of bottoming out around 4,500 points, as exchange data showed signs of modest net buying by foreign investors.

But the potential for violence - and a further slide by the Egyptian pound as a result - may deter most buyers on Sunday. The political crisis appears to have once again stalled any progress towards a loan deal between Egypt and the International Monetary Fund.

When the index broke earlier this month below major support on the November low of 4,683 points, it triggered a double top formed by the September and January peaks and pointing down further in the medium term - there is no major support left before the June 2012 low of 4,027.