Amwal Al Ghad English - 2016-10-11 15:13:23
Egypt’s stock market further plunged on Tuesday after news that Saudi Arabia had suspended oil product supplies to the country this month.
Main index, EGX30 dropped 1.57 percent, to 8232.77 points.
Saudi Aramco informed the Egyptian General Petroleum Corporation, Egypt's state oil company, in early October that it would halt the supply of refined oil products to Egypt, a government official told Reuters on Monday.
"The market reacted negatively to the news about Aramco stopping its supply of petroleum products, and this, coupled with the fact that the index failed to break the resistance barrier of 8,500 points, led to profit-taking," said Ibrahim Nimr, head of technical analysis at Cairo-based Naeem Brokerage.
Wafik Dawood, portfolio manager at Cairo's Compass Capital, said of Saudi Aramco's decision: "The uncertainty about whether this is a one-off event or will be the new status quo is what is creating volatility in the market." More»