Last Updated: Mon Jun 25, 2012 13:33 pm (KSA) 10:33 am (GMT)

Egypt equity trading suspended after index surges

Egypt’s benchmark index is up 6.7 percent, bouncing from five-month lows after the election of the Muslim Brotherhood’s Mohamed Mursi as president. (File Photo)
Egypt’s benchmark index is up 6.7 percent, bouncing from five-month lows after the election of the Muslim Brotherhood’s Mohamed Mursi as president. (File Photo)

The Egyptian Exchange suspended trading for half an hour on Monday after share prices soared following the country’s presidential election result.

The benchmark index was up 6.7 percent when trading was paused automatically, in line with s
tock market rules.

Among the most heavily traded stocks were Orascom Telecom Media and Technology, up 5.2 percent, and Orascom Construction, which gained 7.9 percent.

Egyptian stocks shooting up followed a 3 percent climb on Sunday, bouncing from five-month lows after the election of the Muslim Brotherhood’s Mohamed Mursi as president.

The cost of insuring Egypt’s debt against default fell 17 basis points to 705 bps in the five-year credit default swap (CDS) market, according to Markit.

Egyptian stocks fell 10 percent last week and CDS hit 3-1/2 year highs on worries Egypt could escalate into violence following accusations of electoral fraud and the ruling military council's dissolution this month of the Islamist-led parliament.

“The confirmation of Mohamed Mursi as President of Egypt confirmed our view that recent events were not a coup,” said Emad Mostaque, Middle East and North Africa strategist at Religare in a client note.

“We have been very constructive on Egypt despite recent weakness and would-be strong buyers.”

Israel’s shekel fell to two-year lows following the Egypt election result and ahead of a domestic interest rate decision later on Monday, with the market expecting a quarter-point rate cut.

Comments »

Post Your Comment »

Social Media »