The Egyptian Stock Exchange will not reopen for the third time after investors protested to cancel the 14 percent skid in the stock index EGX 100 and to overhaul the market itself.
Bloomberg News reported that investors met in Cairo Feb. 15 with bourse Vice President Mohamed Farid Saleh and called for a suspension of trading for 13 companies connected to former president Hosni Mubarak. Mubarak stepped down from power last week, giving the military control of the government.
The Egyptian Exchange closed Jan. 27 to protect the market after reaching an eight month low, and will not reopen until Feb. 20. The website for the Egyptian Exchange had made announcements to open the market and resume trading on Feb. 16, but instead released another statement that trading would not resume at that time.
“EGX decided to suspend trading on the 16th and 17th of February, until work is resumed in the banking sector,” the statement read.
Bourse chairman Khaled Seyam said the exchange will not cancel the transactions on Jan. 27, Al Arabiya television reported. Investors had hoped that cancelling the transactions would act as a stimulant to bring some stability to the region’s battered economy.
While the Egyptian economy is still in turmoil, the US economy is benefitting from Egyptians in the United States who are unable to return to Egypt amidst the protests. Michael Russo, sophomore business major, said that his aunt is Egyptian and unable to return.
“It’s happening to a lot of Egyptians here on vacation or for any other reason,” Russo said. “Her green card expired, and so she and every other Egyptian are spending more money in the US. People who are here can’t go back, and so they have nothing else to do but buy American products.”
Russo said that the problems in the Middle East led to the US becoming a “safe haven” for potential investors looking to escape the unsafe conditions, leading to a boost in our economy.