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.