A trader works at the Egyptian stock exchange in Cairo, August 23, 2015 (Reuters)
Egypt's market continues to fall drastically for the third consecutive session after more banks joined the race to raise interest rates for savings certificates, increasing speculation on the monetary policy.
Benchmark index, EGX30, plunged 4.4 percent on Tuesday’s session to record 6.824 points after falling by 2.8 percent and 2.6 percent the previous session.
On Sunday, Egypt's largest two state-owned banks launched savings certificates for Egyptian pounds at an interest rate of 12.5 percent, above the average 10 percent currently offered by banks.
The move created speculation for a possible floatation of the pound and a possible interest rate hike by the central bank.
On Tuesday, Banque du Caire and SIAB bank also launched saving certificates with 12.5 percent interest rates.
A new central bank governor, Tarek Amer, will take charge at the end of this month, with analysts and businesses speculating a different approach to monetary policy.
Institutions and non-Arab foreign investors were net sellers in the stock exchange on Tuesday. Institutions were net sellers to the tune of LE68 million.
Arabs were net buyers to the tune of LE39 million.
Daily stock turnover registered LE538 million to which market bellwether, Commercial International Bank (CIB), contributed 15 percent. The CIB fell 5.99 percent to LE46.7 per share.
Real estate developer Talaat Moustafa Group (TMG) holding declined 2.01 percent to LE6.45 per share and Orascom Telecom Media and Technology (OTMT) holding dropped 2.67 percent to LE0.73 per share.
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