Egypt's stock exchange wavers after oil falls again

Tuesday 26-01-2016 01:06 PM

CAIRO, Jan 26 (Aswat Masriya) - The Egyptian stock market's main index dropped at the begginnig of trading on Tuesday as global oil prices fell once again, while other main indices inched upwards.

The benchmark index EGX 30 fell from 5,894 points to 5,866 points, dipping by 0.45 per cent three hours into trading. The index for mediim and small enterprises EGX 70 and the broader EGX 100 increased by 0.43 and 0.4 per cent respectively.  

Both the Egyptian and Gulf markets were pushed up on Sunday by the rise in oil prices at the end of last week, with Egypt's EGX 30 climbing by 3.15.

Brent crude soared to $32.18 a barrel on Friday but it retreated on Monday and continued to plunge on Tuesday, reaching $30.39 a barrel. Gulf markets have also been affected by the dropping oil, retreaing during morning trading.  

Mohamed Elnagar, the head of research and investment at El Marwa Brokerage, had told Aswat Masriya on Sunday that fears that the global economy will collapse and that oil will continue to fall are still there, asserting that the rise in prices last week does not mean that the "crisis" of oversupply and weakened demand is over.    

The Egyptian stock exchange has been hit hard since the start of the year amid dips in Gulf and global markets. Egypt's EGX 30 has fallen by over 16 per cent since the start of the year. 

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