Egyptian Stocks Tumble After US Credit Downgrade

Egyptian stocks have started the trading week with a 4.18% per cent decline, falling to 4,813 points in the first hour alone of Sunday trading. Market capitalization of the Egyptian Stock Exchange lost today LE10.2 Billion. The Egyptian stock exchange official reports attribute the loss to the downgrade of the US'' credit rating by one of the world''s leading credit rating agencies Standard & Poor''s. The statement said that the impact of the US credit rating downgrade on the global economy seem to be having an impact on the market, with 152 stocks trading in the red and only three trading up. Standard & Poor''s had earlier downgraded the credit rating of the US from AAA, the highest possible grade, by one notch to AA+. This is the first time in history that the US'' credit rating was downgraded. The US is currently facing a debt and budget deficit crisis that many economists feel could have a damaging impact on the global economy.