DUBAI Aug 18 Egypt's stock market fell sharply
on Sunday as it resumed trading after hundreds of people were
killed in a crackdown by the army-backed government on
supporters of the Muslim Brotherhood.
Cairo's main equities index was down 2.5 percent in
the opening minutes to 5,410 points. It fell 1.7 percent last
Wednesday, before the market was shut on Thursday because of the
violence. Sunday's trading day will be shortened to three hours
from four to give exchange employees time to obey a curfew.
The index fell below major technical support around 5,450
points, where it peaked in May and July.
In addition to the bloodshed, the government has threatened
to ban the Brotherhood, which could end remaining hopes for
inclusive parliamentary elections and a return to civilian rule
in coming months.
"As long as we have bloodshed on the streets, it takes away
any reason for foreign and regional investors to buy in Egypt,"
said Amer Khan, director at Shuaa Asset Management in Dubai.
"There are many opportunities in the Egyptian market but you
need economic clarity for these opportunities to be attractive."