News / Middle East

Egyptian Stocks Plunge As Market Reopens

A trader works during Egypt's stock exchange reopening session after a nearly two-month closure, in Cairo, March 23, 2011
A trader works during Egypt's stock exchange reopening session after a nearly two-month closure, in Cairo, March 23, 2011

Multimedia

Egypt's stock market reopened Wednesday nearly two months after the mass protests that toppled former President Hosni Mubarak.  

Shut down after weeks of political unrest, Egypt's stock market reopened Wednesday with armed soldiers standing guard.

Egyptian Finance Minister Samir Radwan rang the bell amid cheers and streaming confetti. But optimism quickly turned to despair.  Just seconds after the market opened, Egyptian shares plunged almost nine percent,  triggering a circuit breaker that suspended trading activity.
Radwan says that's not a big surprise.

"It's normal to expect a dip at the beginning; it's very normal," said Radwan. "But it all depends on the behavior of the dealers in the stock exchange. "

Trading resumed 30 minutes later with a warning to skittish investors.

"I think, what I advise: stick to your papers, don't rush to sell, you may regret it," warned Radwan. "This is the time to buy.  It's a buyer's market."

Weighing on investors is the loss of critical tourist spending and foreign investment in Egypt's economy.
Ongoing investigations against former government officials and businesses, some whose companies are listed on the exchange, also contributed to the decline.  
Still, Mohamed Abdel-Salam, acting chairman of Egypt's Stock exchange sees better days ahead.

"The prices may go down a little bit but it will, I think, from my point of view, it will not increase 10 percent minus," said Abdel-Salam. "But after a while, I think that the prices will increase again and return back to normal prices."

Western analysts say further declines are likely.  Egypt's benchmark index, the EGX 30 has fallen 28 percent since the start of the year.

You May Like

China Investigates Former Powerful Security Chief

Former security chief and member of Politburo Standing Committee, Zhou Yongkang, under investigation for suspected 'serious disciplinary violation' More

India, US Look to Reset Ties During Kerry Visit

This week's talks will be first high level interaction between two countries since Prime Minister Narendra Modi took charge More

Video Young African Leadership Program Renamed to Honor Mandela

YALI program, launched by President Obama in 2010, aims to build skills in business, entrepreneurship, public management and civic leadership More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Vietnamese Staging Chinese Product Boycott After Oil Rig Spati
X
Reasey Poch
July 28, 2014 7:18 PM
China recently pulled an oil rig from an area of the disputed South China Sea that Vietnam also claims. Despite the action, the incident has had a lingering effect on consumers in Vietnam. VOA's Reasey Poch reports from Hanoi on an effort to boycott Chinese products.
Video

Video Vietnamese Staging Chinese Product Boycott After Oil Rig Spat

China recently pulled an oil rig from an area of the disputed South China Sea that Vietnam also claims. Despite the action, the incident has had a lingering effect on consumers in Vietnam. VOA's Reasey Poch reports from Hanoi on an effort to boycott Chinese products.
Video

Video ESA Spacecraft to Land on a Comet

After a long flight through deep space, a European Space Agency probe is finally approaching its target -- a comet millions of kilometers away from earth. Scientists say the mission may lead to some startling discoveries about the origins of the water on earth. VOA’s George Putic has more.
Video

Video Young Africans Arrive in US for Leadership Program

President Barack Obama's Young African Leadership Initiative has brought hundreds of young Africans to the United States for a six-week program aimed at building their knowledge and skills in fields such as public administration and business. Out of the 50,000 young Africans who applied for the program, just one percent was accepted. VOA's Laurel Bowman caught up with some of those who made the cut and has this report.
Video

Video In Honduras, Amnesty Rumors Fuel US Migration Surges

False rumors in Central America are fueling the current surge of undocumented young people being apprehended at the U.S. border. The inaccurate claims suggest the U.S. will give amnesty to young migrants from the region. As VOA's Brian Padden reports from Honduras, these rumors trace back to President Obama's 2012 executive order to halt deportations for some young undocumented immigrants already living in the United States.
Video

Video Students in Business for Themselves

They're only high school students, but they are making accessories for shoes, fabricating backpacks and doing product photography - all through their own businesses. It's the result of a partnership between a non-profit organization that teaches entrepreneurship and their schools. VOA's Mike O'Sullivan and Deyane Moses met the budding entrepreneurs near Los Angeles.
Video

Video Astronauts Train in Underwater Lab

In the world’s only underwater laboratory, four U.S. astronauts train for a planned visit to an asteroid. The lab - called Aquarius- is located five kilometers off Key Largo, in southern Florida. Living in close quarters and making excursions only into the surrounding ocean, they try to simulate the daily routine of a crew that will someday travel to collect samples of a rock orbiting far away from earth. VOA’s George Putic has more.

AppleAndroid