News / Economy

Egypt Share Index Slips Lower Before Army Deadline

Traders work at Egypt's Stock Exchange in Cairo, July 3, 2013. Traders work at Egypt's Stock Exchange in Cairo, July 3, 2013.
x
Traders work at Egypt's Stock Exchange in Cairo, July 3, 2013.
Traders work at Egypt's Stock Exchange in Cairo, July 3, 2013.
TEXT SIZE - +
Reuters
— Egyptian shares closed lower on Wednesday as investors fretted over the possibility of further violence in the country, hours before an army deadline to Islamist President Mohamed Morsi to yield to mass protests and share power.

At least 16 people were killed on Wednesday and 200 wounded when gunmen opened fire on supporters of Morsi who were rallying outside Cairo University, state television reported.

Egypt's army commander and Morsi each pledged to die for his cause as the deadline neared.

The central bank ordered banks to close their doors early ahead of the army deadline, due to expire at around 5:00 p.m. [1500 GMT], and busses in Cairo's financial center downtown were whisking bank employees home.

The country's main share index closed 0.3 percent lower.

“When you have blood at Cairo University it is bad news,” said Hisham Metwalli, a trader at Arab Finance Brokerage. “But people hope it will all be over this evening.”

The index had soared 4.9 percent to a three-week high on Tuesday after the armed forces gave the ultimatum.

The prospect of military intervention raised investor hopes that an end was in sight to turmoil that has frightened away investors and tourists and drained the country's finances since Hosni Mubarak was ousted from the presidency in early 2011.

But brokers said that uncertainty and fears of violence were now pushing prices back down.

“Egypt is in crisis. No one can tell what will happen,” said Omar Ascar at Cairo Financial Investment.

Egypt's currency strengthened on the black market, with one dealer in central Cairo offering to sell dollars at 7.55 pounds and buy them at 7.50 pounds, compared to 7.65 and 7.60 on Tuesday.

In the fixed-income market, the cost of insuring Egyptian debt against default was steady on Wednesday at 875 after having surged to record highs of above 900 on Monday, Markit said.

Foreigners were net buyers of shares, but some investors felt it was early to plunge back into the Egyptian market before the political situation was settled.

“We have been very underweight in Egypt for a long time,” said Alex Trotter, Africa fund manager at Fulcrum Capital in London. “When you do not know what's going on, it's best to be more cowardly.”

You May Like

Abuja Blast Impacts Lives, Livelihoods

Officials say they are looking at ways to help bombing victims and boosting security More

Cambodia Technology Adviser Criticizes Cybercrime Draft Law

Phu Leewood says current criminal code can be used to prosecute offenders and that there is no need for a separate law More

Photogallery A Year Later, Boston Remembers Deadly Marathon Bombings

City pauses to honor victims and salute emergency workers who came to their assistance in frantic moments after blasts More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Google Buys Drone Companyi
|| 0:00:00
...
 
🔇
X
George Putic
April 15, 2014
In its latest purchase of high-tech companies, Google has acquired a manufacturer of solar-powered drones that can stay in the air almost indefinitely, relaying broadband Internet connection to remote areas. It is seen as yet another step in the U.S. based Web giant’s bid to bring Internet to the whole world. VOA’s George Putic reports.
Video

Video Google Buys Drone Company

In its latest purchase of high-tech companies, Google has acquired a manufacturer of solar-powered drones that can stay in the air almost indefinitely, relaying broadband Internet connection to remote areas. It is seen as yet another step in the U.S. based Web giant’s bid to bring Internet to the whole world. VOA’s George Putic reports.
Video

Video Ray Bonneville Sings the Blues and More on New CD

Singer/songwriter Ray Bonneville has released a new CD called “Easy Gone” with music that reflects his musical and personal journey from French-speaking Canada to his current home in Austin,Texas. The eclectic artist’s fan base extends from Texas to various parts of North America and Europe. VOA’s Greg Flakus reports from Austin.
Video

Video Millions Labor in Pakistan's Informal Economy

The World Bank says that in Pakistan, roughly 70 percent work in the so-called informal sector, a part of the economy that is unregulated and untaxed. VOA's Sharon Behn reports from Islamabad on how the informal sector impact's the Pakistani economy.
Video

Video Passover Celebrates Liberation from Bondage

Jewish people around the world are celebrating Passover, a commemoration of their liberation from slavery in Egypt more than 3,300 years ago. According to scripture, God helped the Jews, led by Moses, escape bondage in Egypt and cross the Red Sea into the desert. Zlatica Hoke reports that the story of the Jewish Exodus resonates with other people trying to escape slave-like conditions.
Video

Video Police Pursue Hate Crime Charges Against Kansas Shooting Suspect

Prosecutors are sifting through the evidence in the wake of Sunday’s shootings in a suburb of Kansas City, Missouri that left three people dead. A suspect in the shootings taken into custody is a white supremacist. As VOA’s Kane Farabaugh reports, he was well-known to law enforcement agencies and human rights groups alike.
Video

Video In Eastern Ukraine, Pro-unity Activists Emerge from Shadows

Amid the pro-Russian uprisings in eastern Ukraine, there is a large body of activists who support Ukrainian unity and reject Russian intervention. Their activities have remained largely underground, but they are preparing to take on their pro-Moscow opponents, as Henry Ridgwell reports from the eastern city of Donetsk.
Video

Video Basket Maker’s Skills Have World Reach

A prestigious craft show in the U.S. capital offers one-of-a-kind creations by more than 120 artists working in a variety of media. As VOA’s Julie Taboh reports from Washington, one artist lucky enough to be selected says sharing her skills with women overseas is just as significant.
Video

Video UN Report Urges Speedier Action to Avoid Climate Disaster

A new United Nations report says the world must switch from fossil fuels to cleaner energy sources to control the effects of climate change. The Intergovernmental Panel on Climate Change released the report (Sunday) following a meeting of scientists and government representatives in Berlin. The comprehensive review follows two recent IPCC reports that detail the certainty of climate change, its impacts and in this most recent report what to do about it. VOA’s Rosanne Skirble has the details.
AppleAndroid

World Currencies

EUR
USD
0.7287
JPY
USD
103.22
GBP
USD
0.6027
CAD
USD
1.0991
INR
USD
60.191

Rates may not be current.