Market Update: Egypt stocks plunge midday Tuesday on Syria dilemma

Ahram Online, Tuesday 27 Aug 2013

Potential military action against Syria spooks investors across the Arab region, sending Egyptian stocks down 1.6% by midday on Tuesday

Syrian protester waves the Syrian revolutionary flag (Photo: AP)

Egyptian stocks tumbled 1.6 percent on midday Tuesday due to political unrest in the Middle East, mainly the situation in Syria, an Egyptian market expert has said.

Syria is expected to see foreign intervention as UN inspectors finally reach the site where chemical weapons were allegedly used last week. The world is unsure how to respond to the dire situation.

Bashar Al-Assad's regime is accused of using chemical weapons in attacks that killed over 1,300 people in east and south-west Damascus. A UN convoy was sent to probe site.

The main and broader indices, EGX30 and EGX70, both slumped 1.6 percent each on Tuesday morning.

"It isn’t only Egyptian stocks, all Arab bourses declined," Eissa Fathi, vice head of the securities division at the Cairo Chamber of Commerce, told Ahram Online.

Dubai, Kuwait and Abu Dhabi indices declined 4.3, 0.2 and 0.4 percent respectively on Tuesday.

Out of around 160 stocks currently listed on the Egyptian benchmark indices, more than 120 fell.

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