Egyptian bourse reopens tomorrow after political crisis

Egyptian stock market reopens tomorrow after remaining suspended for more than seven weeks to stave off a sharp decline following the political crisis that led to the ouster of President Hosni Mubarak.

Abdel Salam, chairman of Misr for Central Clearing, will supervise the exchange activities for six months following resignation of the bourse chairman, Khaled Serri Siyam. Stocks put in their worse performance in 13 months, with the stock exchange's benchmark index EGX 30 slumping nearly 16% in the two days the exchange was reopened on January 26. Eighteen days of mass street protests, which forced Mubarak to step down on February 11, has disrupted bourse trading in the country. It remained suspended until measures were taken to ensure the market's gradual return to normal operations, including encouraging steps to lure traders to buy for increasing demand. The Egyptian bourse has frozen assets of more than 150 people, mostly charged with corruption and misappropriation of state funds, since Mubarak''s resignation on February 11, pending state investigations. The European Union (EU) was also reported to have agreed Monday to freeze assets of Mubarak, his two sons and their wives. Abdel Salam mainly urged small investors to avoid a wave of selling when the bourse opens tomorrow, stressing that trading will eventually return to its normal level in a short time. The Egyptian government is keen on taking all measures to support the Stock Exchange, said an official source with the Ministry of Finance on Tuesday.
In press statements, the official noted that there are more than one mechanism for buttressing the bourse including purchase of stocks and shares through brokers. These mechanisms also include purchase of securities of investment funds that are affiliated to the commercial banks operating in Egypt, he said, adding there were 34 such funds. The government, he pointed out, has adopted all measures to protect small investors in the exchange.