MENA (Egypt’s state owned news agency) reported that Egypt indices witnessed a sharp decline at the beginning of the trading session on Sunday provoked by the negative repercussions of Britain’s exit from the European Union (EU) on the world stock markets.
The market capital lost 14 billion pounds (about 1.6 billion U.S. dollars) in the first two minutes of the session to hit 378.2 billion pounds against 392.2 billion pounds, according to MENA.
The main benchmark of the Egyptian Exchange (EGX) 30 index declined 5.2% reaching 6876, 16 points.
In addition, the broader EGX 70 index of the leading small and medium-sized enterprises (SMEs) was down by 2.5%recording 339,6 points.
The overall EGX 100 index was down 3.1 %reaching 723,54 points.
Technical analysts predicted that investors of the Egyptian Exchange (EGX) would face a hard day on Sunday’s session, affected by the of the Britain exit from the European Union.
Ibrahim El-Nemr, Head of the technical analysis department at Naeem Brokerage, said that Sunday will see a wave of selling that may push EGX30 to decline to 6,900-7,000 points. He added that this fall may continue throughout the week and close at 6,600-6,750 points, compared to 7,253.3 points last week.
In the same context, Mohamed Al-Assar, head of the technical analysis department at the National Bank of Kuwait (NBK) for Investment in North Africa and the Middle East, said that the stock market will face vigorous declines during the first two sessions of the week to 6,800 points.
The Global stock market is negatively affected by Britain exit from the EU. Experts are expecting that Britain’s move will paralyze several world, and European, economies for a long period of time.