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Thursday 24 June 2021
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Egypt postpones stock market opening again

Egyptian Stock Market authorities say trading would  remain closed, at least until Sunday, 6 March.

Trading was originally scheduled to resume on Tuesday, having been halted since 27 January, two days after the eruption of the revolution that toppled former President Hosni Mubarak.

Stock market officials have been reluctant to resume trading, even after the return of banks to work to near normalcy.

The major fear is that about US$500 million worth of credit money is sill not settled, despite assurances from major brokerage firms they will not force small investors to sell their stocks once trading resumes.

Another fear is that there could be a big drop in many heavyweight stocks, whose owners are under investigation for corruption charges by the General Prosecution and whose transactions have been proved to be illegal.

The stock exchange has already announced a series of measures that aim to limit volatility and prevent a feared sharp fall after the resumption of trade.

There have been daily protests in front of the headquarters of the Egyptian bourse in Cairo in the past few days, asking for the halt of trade for an indefinite period until calm and security are totally restored across the country.

Those who argue for a necessary quick resumption of trade insist that the longer the period the market remains shut, the bigger the risk of losing international investors and confidence.

The Egyptian bourse had lost nearly US$ 13 billion, or almost 25 per cent of its value, in just two of trading days, before being forced to shut down at the height of the successful and peaceful protests for change


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