The Egyptian crisis continues to reverberate around the financial markets. With global financial centres mostly closed, the action was concentrated on Sunday in the Middle East, where shares suffered their biggest one-day falls in weeks.
Dubai’s index plunged 4.3 percent, in the steepest fall in the region. Egypt’s market was closed after sliding 16 percent last weekend will be shut on Monday.
Paul Herber, co-portfolio manager of the Forward Frontier MarketStrat fund, told Anora Mahmudova of beyondbrics: “The risk of contagion…is quite high.”
Herber said:
The real question is – is the investment flight a short term phenomenon, based upon immediate events or will it continue and expand and turn into a wave of capital pulling out of these assets for longer period. Nobody knows the answer to that.
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