PANAPRESS
Panafrican News Agency
Egyptian bourse may resume this week
Cairo, Egypt (PANA) - Egypt's caretaker Prime Minister, Dr. Essam Sharaf, Monday reaffirmed that the Egyptian Stock Market would resume trading this week.
This came after warnings from leading international investment organizations, led by Morgan Stanley, that Egypt's bourse risked exclusion from a basket of international indices if it did not resume trading before 28 March.
The Egyptian bourse closed since 27 January, two days after the eruption of the revolution that toppled former President Hosni Mubarak and it is more likely to be re-opened on Wednesday, 23 March, according to sources close to the ministerial council.
If it remains shut until 28 March, it will make a total of 40 working days out of action for the Egyptian Stock Exchange, which is a breach of regulations of listing in international indices.
Stock market officials have been reluctant to resume trading for fear of the US$ 300 million worth of credit money yet to be 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 expensive stocks, whose owners are being investigated for corruption by the General Prosecution and whose transactions have been proven illegal.
There are also worries the re-opening of the market could witness an outflow of foreign capital with the flight of foreign investors.
The stock exchange has already announced a series of measures that aim to limit volatility and prevent a sharp fall after the resumption of trading.
There have been daily protests, led by small investors in front of the headquarters of the Egyptian bourse in Cairo in the past few weeks, asking for the halting of trade for an indefinite period until calm and security are totally restored across the country and until a new civilian administration to succeed the Supreme Council of the Armed forces.
The Egyptian bourse has lost almost US$ 13 billion, or almost 25 per cent of its value in just two trading days, before being forced to shut down at the height of the protests.
According to some economic analysts, from how the Tunisian Stock Exchange performed at the height of protests and how the Japanese market acted in the middle of an earthquake, a tsunami and a nuclear threat, the outcome of trading by the Egyptian bourse could be much better than many fear.
There have been popular campaigns to support the Egyptian bourse with money from within the country and the Arab world, with leading Egyptian investors at home and abroad and prominent Arab investors vowing to heavily invest in what they see as a long-term investment.
-0- PANA MI/BOS 21March2011
This came after warnings from leading international investment organizations, led by Morgan Stanley, that Egypt's bourse risked exclusion from a basket of international indices if it did not resume trading before 28 March.
The Egyptian bourse closed since 27 January, two days after the eruption of the revolution that toppled former President Hosni Mubarak and it is more likely to be re-opened on Wednesday, 23 March, according to sources close to the ministerial council.
If it remains shut until 28 March, it will make a total of 40 working days out of action for the Egyptian Stock Exchange, which is a breach of regulations of listing in international indices.
Stock market officials have been reluctant to resume trading for fear of the US$ 300 million worth of credit money yet to be 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 expensive stocks, whose owners are being investigated for corruption by the General Prosecution and whose transactions have been proven illegal.
There are also worries the re-opening of the market could witness an outflow of foreign capital with the flight of foreign investors.
The stock exchange has already announced a series of measures that aim to limit volatility and prevent a sharp fall after the resumption of trading.
There have been daily protests, led by small investors in front of the headquarters of the Egyptian bourse in Cairo in the past few weeks, asking for the halting of trade for an indefinite period until calm and security are totally restored across the country and until a new civilian administration to succeed the Supreme Council of the Armed forces.
The Egyptian bourse has lost almost US$ 13 billion, or almost 25 per cent of its value in just two trading days, before being forced to shut down at the height of the protests.
According to some economic analysts, from how the Tunisian Stock Exchange performed at the height of protests and how the Japanese market acted in the middle of an earthquake, a tsunami and a nuclear threat, the outcome of trading by the Egyptian bourse could be much better than many fear.
There have been popular campaigns to support the Egyptian bourse with money from within the country and the Arab world, with leading Egyptian investors at home and abroad and prominent Arab investors vowing to heavily invest in what they see as a long-term investment.
-0- PANA MI/BOS 21March2011
