“If investors are leery, they will be pulling out of markets. Egypt is no exception,” says Mohamed Farid CEO of Dcode Economic and Financial Consulting.
“Stock exchanges are part of a globalized economy and what happens in one economy is bound to affect others,” he says. “It’s very normal to be caught up in the turmoil.”
In general, the fall of the Chinese stock market has made investors nervous about so-called “emerging markets” — a category Egypt falls into, along with China and countries like India, Brazil and Indonesia.
In recent years, emerging markets have been hailed as good investment bets, offering higher rates of return than stocks in more developed economies. China’s fall from grace has badly shaken investors, and Egypt has been caught up in the scare.