Heavy losses in Egypt's market extended for the third session in a row on Tuesday, with benchmark index EGX30 plummeting 4.4 percent because of speculation about a possible currency devaluation or a rise in local interest rates.
Meanwhile, the broader EGX70 index and the EGX100 index also dropped 3.84 percent and 3.4 percent, respectively.
The EGX market capital on Tuesday lost LE13.4 billion (US$1.7 billion), but in the last three sessions lost more than LE26.5 billion ($3.3 billion).
Egypt's third-largest state bank, Banque Du Caire, said on Tuesday it was issuing savings certificates in Egyptian pounds with a high interest rate of 12.5 percent, joining two other state banks which have taken similar action.
Investors think this could be a prelude to a devaluation, a domestic interest rate rise or possibly both, but the central bank has not clarified its intentions, leaving investors panicking.
With sagging foreign exchange reserves, Egypt is in poor shape to cope with either factor. Its debt-insurance costs surged to 18-month highs on Monday and its dollar bond prices fell sharply.
