How will Egypt’s stock market react to recent bombings?

Egypt’s stock market started trading on Monday with a minute’s silence to honor the victims of the blast that rocketed Saint Mark’s Church on Sunday. (File photo: AP)

The bombing of a Cairo church on Sunday will have a minor effect on this week’s Egyptian stock market trading despite the severe losses forecast for Monday, analysts told AlArabiya.net.

Egypt’s stock market started trading on Monday with a minute’s silence to honor the lives of 25 Copts, who died as a result of blast that rocketed Saint Mark’s Church during a Sunday mass.

According to Amani Abdul Motaleb, Head of Brokerage at Team for Stock Exchange, collective selling anticipated for Monday will lead to losses on individual stocks, but a more limited drop will show during session starting Tuesday.

Nonetheless, recent worldwide events, including the Istanbul bombing, will shield the Egyptian stock market from any potential repercussions of the church bombing.

On Saturday, 39 people were killed following an explosion outside a football stadium in Istanbul. 

Buying inflows 

Abdul Motaleb believes that the recent stock market rally driven by the demonetization of the Egyptian Pound last month is still encouraging buying inflows from institutions, while retailers turned net sellers to achieve short-term profit taking.

“This wave of trading is an uplift to the stocks, which are expected to further rise once the consequences of the recent terrorist attacks calm down,” she said.

Sunday’s bombing came two days after another bombing in Cairo left six people dead.

Last week, the market cap of listed stocks in the Egyptian stock market witnessed losses of 7.9 billion Egyptian Pounds, registering a loss of 36.93 percent week-on-week, as the market’s main EGX 30 index fell with 2.17 percent compared to the week before.

EGX 70 index for small and medium cap stocks witnessed a more vigorous decline of 3 percent, losing 14 points by the end of Thursday’s trading, while the EGX 100 declined by 2.48 percent to lose 27 points by the end of the same session.

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Last Update: Wednesday, 20 May 2020 KSA 09:48 - GMT 06:48
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