I am not that expert in the stock market but I studied it in my college years.I expected that the Egyptian Stock market would fall just like what happened today.Today our Egyptian Key Stock market Index “Case 30” fall 16.4% today to mark the lowest fall in the last two years and the lowest among the Arabic stock markets, you see today was the fall day.
The Egyptian stock market was closed since last Tuesday and has just been opened today not because of the national vacations I am afraid but because the fear of the implications of the international and regional stock markets fall.The government thought that it was better to give for the strong real Stock Market world time to recover but in vain ,it is like a domino effect.
Wall Street is falling and is dragging with it the Gulf States Stock markets with it , we fall because we are already weak and depend upon Wall Street and Gulf States.
The Foreign and Arab investors hurried to sell their shares and get their money quickly from Egypt so they can cover their losses in their countries. Already in the few past months the foreigners sold their shares and got their money out the country.
For sure the small investors will suffer the most. Ironically this just came after some silly campaign launched in Ramadan to encourage middle class people to invest their money in the stock market !!
Yes everyone else in the world is suffering but we will suffer the most because our economy is not that strong regardless that fact that our minister of finance got some fancy position in IMF !! Yeah Youssef Boutros Ghali got some fancy position in the IMF and unfortunately he will not leave the cabinet as expected :(
We have lost today L.E 53 Billion !! Yes Billion and the Prime Minister Nazif from couple of days ago said that we would not be affected by the international financial crisis !!
It's true that foreign investors sold their shares in the market to get some money to cover their own losses, but this doesn't make the market fall 16% as they we don't have that weight of foreign investment in the egyptian stock. What really made the problem is that egyptian investors panicked and started selling their shares because they know that there's some kind of crisis going on abroad.
ReplyDeleteThe problem is people are not ready to invest in stocks, as it requires certain knowledge to poses which most of the average investor doesn't have. They tend to gamble in the end, that's why I didn't like the campaigns for stock market investment because it makes people believe it's an easy game.
@Gee I agree with you 100% that it turns in to gambling if you do not have enough knowledge and most small investors do not have enough knowledge ,they are search for quick profit.
ReplyDeleteThe stock market investments campaigns are the worst,I do not know who thought of them like this