What are the factors that caused the drop in the Egyptian stock market in summer 2015


    What are the factors that caused the drop in the Egyptian stock market in summer 2015

  • 1 Fears of a global slowdown

    The fears of a global slowdown in the world has sparked fears among investors, especially non-Egyptians, who started selling stocks to look for safer asset classes. See why global markets fell in summer 2015.

  • 2 Concerns of a slowdown in China

    Data released by China has shown that the economy in China might be heading towards a slowdown. As China's economy slows, the world's economy is more likely to slow down, and so world markets are more likely to go down.

  • 3 The drop in oil prices

    Oil dropped below $40 a barrel. Such a drop affects the economy of gulf countries badly, which might force them to give less economic aid to Egypt as their budgets become under pressure, See factors affecting oil prices.

  • 4 The drop in global markets

    As concerns over the global slowdown increased, a wide sell off was triggered in the world markets, which triggered a sell off in the Egyptian market. See signs the stock market is about to crash.

  • 5 The drop of Gulf countries' stocks

    As the stock markets in Gulf countries dropped, the Egyptian market followed. The fact that Egypt's economy has been supported by aids from the Gulf has resulted in a very strong correlation between the Egyptian stock market and that of the Gulf countries.

  • 6 Fear of a new financial crisis

    Some analysts are expecting a new financial crisis similar to the one that happened in 2008. The fears have led many investors to start selling their stocks and to hold on to cash.

  • 7 Non-Egyptians selling stocks to cover their losses

    As the world markets fell, some non-Egyptian Investors had to sell their stocks in Egypt to cover some of the losses they incurred in their countries.

  • 8 Concerns that the global slowdown would affect the new Suez canal project

    Concerns that the global slowdown would result in less ships moving through Egypt's new Suez canal have increased the fears among investors and led to a more negative sentiment.

  • 9 Political instability in the region

    The political instability in the region has made the Egyptian stock market seem much less attractive, especially when a global economic slowdown is widely expected.

  • 10 Some Egyptian stocks are listed in London Stock Exchange

    Some Egyptian companies are listed in London Stock Exchange. As the markets started falling in Europe, the Egyptian stocks listed there fell and so investors in Egypt started selling their local stocks as well.