Egypt's Stock Market Dives After Juhayna Chairman's Asset Confiscation

he Egyptian stock market's benchmark index dipped by 3.22 percent on Sunday, in what analysts believe is the result of the confiscation of the assets of the chairman of food company Juhayna.

EGX 30 plunged to 7625.76, the lowest point since July 27 when it settled at 7887.87. Likewise, the index for small and medium enterprises EGX 70 and the broader EGX 100 fell by 2.21 and 2.86 percent, respectively.

Eissa Fathy, the managing director of a Cairo-based securities firm described news related to the confiscation of the assets of Juhayna's chairman Safwan Thabet as one of the "sparks" for the stock market's dive.

Fathy cited other reasons as well, including the drop in Gulf markets.

The Egyptian Exchange had to temporarily suspend the trading of Juhayna's stock after it fell by more than the 5 percent, which is more than the maximum drop allowed in a single session. Juhayna's stock ended descended by 7.51 percent at the end of Sunday's trading.