1 Minute Read by Reuters Staff Reuters, CAIRO, July 6 – On Tuesday, Egypt’s major stock index plummeted over 2%, a decline analysts attributed to Ethiopia’s news that it had started filling the reservoir behind its massive hydropower dam for the second year in a row. At the closing of trade, Egypt’s main index was down 10,155 points, or 1.80%. “What we’re seeing are fear transactions by individual investors,” said Rania Yacoub, chair of Three Way Brokerage’s board of directors. “The Renaissance Dam is the only explanation for the drop.” The Grand Ethiopian Renaissance Project (GERD) on the Blue Nile is critical to Ethiopia’s economic development and electricity generation, but Egypt sees the dam as a serious danger to its Nile water resources. Egypt and Sudan have also urged that Ethiopia reach a binding deal before the second filling. El Sewedy Electric was down 3.9 percent, and Fawry was down 3.1 percent. Beltone shares were down 6%, Pioneers Holding was down 4.9 percent, El Sewedy Electric was down 3.9 percent, and Fawry was down 3.1 percent. Ehab Farouk contributed to this report. Malaika Tapper wrote the piece, while Aurora Ellis edited it./n
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