x Abu Dhabi, UAEFriday 28 July 2017

Trading suspended in Egypt as market plung

Markets Update: Egypt market suspends on trading as equities drop below 5 per cent.

Egypt's stock market was suspended as equities plunged below 5 per cent ahead of the US Federal Reserve meeting as investors fretted about sovereign debt crises on both sides of the Atlantic.

The EGX 30 Index was last quoted at 4,466 points before the suspension.

"The trading session was suspended as the circuit breaker stopped the index from dropping more than 5 per cent," said Hisham Turk, the spokesperson for the Egypt Stock Exchange (EGX).

"The country's central bank has 30 per cent of its reserves in the form of US treasury bills, while banks trade those securities. This has prompted a sell-off by retail investors in equity markets on the back of global market turmoil."