The Impact of Russia-Ukraine War on The Egyptian Stock Market

Abstract

The study aims to investigate the Egyptian stock market response to the Russia-Ukraine war, by employing GARCH model on firms registered in Egyptian Stock Market for a period from March 2022 to March 2023. It is expected that the war will have a significant negative impact on Egyptian economy through food, energy, and Tourism, which will have a significant implication on Egyptian stock market, in addition to the direct effect of the war on the Egyptian stock market. the Russia and Ukraine market represent 40% of Egyptian tourism market. Therefore, Egypt witnessed increase in food and energy prices which affects the state general budget and foreign currency reserve. The inflation and supply chain disruption resulted from the war affect the performance of Egyptian companies which affect negatively on stability of Egyptian stock market and lead to exit of foreign investors. Keywords: Russia-Ukraine war, Egyptian Stock Market, Egyptian Economy.