The Egyptian Exchange (EGX) continued its losses for the fifth consecutive trading day with its benchmark index EGX-30 dropping by 4% to 6205.23 points, and the market capital shed $8.13bn.
The downwards trend started on 6 January, with the EGX-30 declining by 1.41% and continuing on the next trading day, which was 10 January on which EGX-30 lost 2.03%. On 11 and 12 January, EGX-30 plummeted by 2.17% and 2.58%, respectively.
Egyptians and Arabs were more inclined to buy shares, while foreigners opted to sell theirs. As for Individuals and companies, the first was encouraged to buy while the latter chose to sell their shares.
EGX-70, which comprises small and medium enterprises, declined by 3.76% to reach 258.33 points, while broader index EGX-100 declined by 3.5% to record 731.31 points.
Analysts have predicted that 2016 will be a tough year for the stock market as oil prices continue to decline. The price of a barrel of crude oil declined from $33.3 to $31.8 as a result of the high supply of crude oil in the international market from exporting countries.
The current price marks a 12-year-low for oil and resulted in an average decline of 3% in the stock markets of Saudi Arabia, Qatar, Abu Dhabi, and Kuwait.
The Royal Bank of Scotland dubbed 2016 as a “cataclysmic year” for the capital markets, stating that with oil prices expected to fall to $16 per barrel, the market can drop by 20%.
