Chaos In The Egyptian Stock Market, Massive Losses (EGPT)

The Egyptian stock market experienced panic as the market nosedived 6.25% in 15 minutes yesterday, according to

. Today, Egyptian stocks plunged even further, over 10% as the selling frenzy continues, according to

. The Egyptian stock market even tried halting trading to ease the panic, but it did not help. The stock market continued to fall immediately after the market reopened for trading and trended lower for the remainder of the day. Why the enormous drop? As political turmoil in Egypt increases, so too does the cost of insuring the country's debt, accord to the Wall Street Journal. Moreover, Egyptian youth are taking a stand against President Hosni Mubarak, as they demand a conclusion to his 30-year rule, according to

. As protests continue and opposition to the current rule increase, the uncertainty for the political future as well as the economic one increases as well. Apparently, Twitter has been blocked in the country as it tries to get the chaotic political situation under control,

.

, the largest ETF-issuer, iShares, was planning to introduce an Egypt ETF to rival one already in place by Market Vectors. This is a clear sign that the expectation existed for Egypt to become more of a player in the global markets. With the present uncertainty, investors should be extremely cautious of how they invest in the Egyptian market. The Market Vectors Egypt Index ETF

is down sharply this morning, over 7.4% less than yesterday's close.