Eastern Company for Tobacco shares fell 5.8 percent, Commercial International Bank 1.2 percent, El Sewedy 6.4 percent, Madinet Misr for Housing and Development 5.4 percent, Ezz Steel 2.8 percent, Talaat Moustafa Group 2.1 percent, and E-Finance for Financial Investments 0.8 percent.
The U.S. unemployment rate rose to a three-year high of 4.3 percent in July amid a sharp slowdown in hiring, pointing to potential weakness in the labor market and increased risks of recession.
Regionally, Israel and the United States are preparing for a dangerous escalation in the Middle East after Iran, Hamas and the Lebanese Hezbollah group vowed to respond to the killing of Ismail Haniyeh, head of Hamas’s political bureau, and Fuad Shukr, a senior military commander in the Lebanese militant group, last week.
Mona Badir from Al Baraka Bank said that the Egyptian Stock Exchange and the Egyptian pound are under pressure from geopolitical tensions in the region and their significant escalation.
“The longer we wait, the more we will be anticipating the form of the escalation and how Iran will respond, and this alone is enough to increase pressure on any assets denominated in local currency,” she added, explaining that “the environment is fragile for risks of this type.”
Badir pointed out that there are changes that are difficult to ignore, the most important of which are the “clear exits” from local debt instruments and financial assets denominated in the local currency, “and this is very consistent with the risks of the region.”
The dollar also moved during Monday’s trading to its highest price against the pound since March, exceeding 49 pounds.
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