Welcome Back, Egypt
After approximately seven weeks of silence, the Egyptian stock exchange is finally back on its feet. As expected, the first few days were difficult, as shares fell and sent the benchmark index to a 23 month low. Many international investors sold holdings to free money that had been locked up for the almost two month duration.
EFG-Hermes Holding SAE, for instance, the nation’s biggest investment bank, went to the lowest point since July 2009. In general, international investors, including Arabs, sold US$28 million.
Mohamed Abdel Salam
In addition, the head of Egypt’s stock market, Mohamed Abdel Salam, recently announced that the exchange was suspending the trading of 46 companies. These companies have failed to meet disclosure requirements that ask them to disclose if they have assets or shareholders under investigation.
Press Conference News
As Abdel Salem said in a televised press conference on state television, “The market has been closed for almost 60 days, so we required all companies to tell us how they’ve been affected and if they have shareholders under investigation.”
Those in the know predict that the market will continue to fall for a bit, as investors try to exit positions from the lock up period.