Egyptian stocks dropped this week reversing earlier advances as elections for the parliament were delayed when a high court ruled a law governing the upcoming election was unconstitutional. At the same time, Dubai stocks were also down.
The EGX 30 Index fell 0.8% in Cairo for its lowest close in nearly two months on Friday. The index was up prior to the decision released by the court. Close to 154 million Egyptian pounds equal to $20 million of shares were traded compared to 733 million pounds on an average day. Dubai’s stock index was down 1% on Friday.
Egypt, which has not had its lawmaking body since July of 2013 when the military ousted former president Mohamed Morsi, was due to have its parliamentary election in March.
Abdel-Fattah el-Sisi the former head of the military has ruled the country by decree following his election in 2014.
A high court announced on Friday that the law that governs the split of regions for this vote was not constitutional which prompted the elections supervising committee to announce that the election process would be rescheduled.
The DFM General index in Dubai dropped to its lowest point in nearly a month, while in Abu Dhabi the index was up 0.1%. The Saudi Arabia index was up by 0.3% as Brent crude increased by 4.2% last in the week, making its first gain for a month since June of 2014 as drilling was curbed by U.S. producers.
Oman’s MSM Index was up 0.3%, which was the most in over two weeks, while the BB Index in Bahrain added just over 0.1% and Kuwait’s index shrank by 0.3% to its lowest point in over a month. The market in Qatar was close Friday due to a holiday.
The currency in Israel weakened last week by 3.3%, the largest decline for a week since August of 2009, after the country’s central bank, the Bank of Israel surprised many economists by lowering its base interest rate to just 0.1% on Monday February 23.