All year we’ve been talking about the amazing run in the Egyptian stock market, a rally that’s had experts scratching their heads, given that the Egyptian economy is in shambles, and the state is rapidly running out of foreign currency reserves.
But in the last few days the market — which had been up some 45 per cent this year — has fallen hard,
Today was its worst day of the selloff: down 3.3 per cent.
Here’s an intraday look at the index.
Egyptian EGX 30 Price Return Index
A question you might be asking is: Do I care?
Well, you might want to care. The rally in risky, beaten down markets this year has been a sign of voracious risk appetite around the world. It’s possible that the cooling off of Egyptian market demand represents something bigger. Perhaps.