With former Egyptian President Hosni Mubarak and the riots out of the picture, Egypt was supposed to follow through with the long-anticipated parliamentary elections. However, the elections are proving as contentious, sparking another round of riots, which is weighing on the Egypt-related exchange traded fund.
Van Eck’s Market Vectors Egypt Index ETF (NYSEArca: EGPT) lost about 5% on Monday The fund has lost 41.3% year to date.
“We’re seeing increased downward momentum this week because some investors are starting to realize stability isn’t increasing as we’re approaching elections,” Wafik Dawood, director of institutional sales at Mega Investments Securities, said in a Bloomberg report. “In fact, we’re seeing more violence in the Delta and in Upper Egypt.”
Security forces are clashing with protestors in the north while feuding clans have open fired on one another in the South. Additionally, attacks have also disrupted Egypt’s natural gas pipelines, according to the report. [Mubarak Steps Down and Egypt ETF Surges]
The lower house will hold elections on Nov. 28, while upper house will hold elections in January. In March, the parliament will select a committee to write a new constitution. Currently, no date has been set for a presidential election.