khwarizmi
04-07-2013, 21:42
Main index up 7.3 percent as Egyptian investors react positively to ousting of President Morsi
Egypt's main stock exchange index, the EGX30, soared by 7.3 percent on Thursday, cutting year-to-date losses to just 2.3 percent as the market reacted to the ousting of Mohamed Morsi from power.
The announcement that Morsi was being forced to step down, made by General Commander of the Armed Forces Abdel-Fatah El-Sisi on Wednesday night, came after days of much-anticipated anti-government protests. Egyptian stocks had been plunging for a month prior, due to the ongoing political deadlock.
The statement outlined a roadmap for the transition of power, suspending the constitution and designating High Constitutional Court head Judge Adly Mansour as interim president pending presidential elections.
Egyptian investors, reacting positively to the news, were the only net-buyers, grabbing a net LE140.3 million worth of stocks, while total turnover reached a relatively high LE459 million.
"Egyptian investors are relieved by this turn of events, and have great hope now that a potentially explosive situation is under control," Ashraf Abdel-Aziz, head of institutional sales at the Cairo-based Arabia Online Securities told Ahram Online.
"It was great news for the market," concurred Osama Mourad, an independent analyst and former chief executive of Arab Finance Brokerage.
The bourse had seen its first dramatic rebound on Tuesday, a day after El-Sisi had first addressed the nation, giving Egypt's embattled President Morsi 48 hours to "meet the demands of the people."
Foreign investors were largely net-sellers, with non-Arab foreigners in particular offloading a net LE102.5 million worth of stocks.
http://english.ahram.org.eg/NewsContent/3/12/75733/Business/Economy/Egyptian-hopes-send-stocks-soaring-after-Morsi-rem.aspx
Egypt's main stock exchange index, the EGX30, soared by 7.3 percent on Thursday, cutting year-to-date losses to just 2.3 percent as the market reacted to the ousting of Mohamed Morsi from power.
The announcement that Morsi was being forced to step down, made by General Commander of the Armed Forces Abdel-Fatah El-Sisi on Wednesday night, came after days of much-anticipated anti-government protests. Egyptian stocks had been plunging for a month prior, due to the ongoing political deadlock.
The statement outlined a roadmap for the transition of power, suspending the constitution and designating High Constitutional Court head Judge Adly Mansour as interim president pending presidential elections.
Egyptian investors, reacting positively to the news, were the only net-buyers, grabbing a net LE140.3 million worth of stocks, while total turnover reached a relatively high LE459 million.
"Egyptian investors are relieved by this turn of events, and have great hope now that a potentially explosive situation is under control," Ashraf Abdel-Aziz, head of institutional sales at the Cairo-based Arabia Online Securities told Ahram Online.
"It was great news for the market," concurred Osama Mourad, an independent analyst and former chief executive of Arab Finance Brokerage.
The bourse had seen its first dramatic rebound on Tuesday, a day after El-Sisi had first addressed the nation, giving Egypt's embattled President Morsi 48 hours to "meet the demands of the people."
Foreign investors were largely net-sellers, with non-Arab foreigners in particular offloading a net LE102.5 million worth of stocks.
http://english.ahram.org.eg/NewsContent/3/12/75733/Business/Economy/Egyptian-hopes-send-stocks-soaring-after-Morsi-rem.aspx