Egypt Independent

Update: Market makes modest recovery as board meets over fluctuations

A statement by the Egyptian Exchange

, a copy of which was obtained by Egypt Independent, said the stock market's board had held a meeting earlier Monday to assess the current situation and discuss means to address further fluctuations, but that trading would not be suspended.

Stock Market chairman Mohamed Omran said in the statement that a suspension of trading is not on the table, noting that the board is anxious to ensure free access by buyers and sellers to the market based on rules for offer and demand, as well as to ensure regularity of the trading process.

The meeting came as the market made a modest recovery after initially losing LE9 billion in its first few minutes of trading. The main index, EGX30, moved up by 2.5 percent to 5015. 

The rise in value compensated for an initial drop to 4712, which tied the index's previous record in July shortly after President Mohamed Morsy's election.

The market had recorded its third-largest loss in history Sunday, at about LE29.4 billion, and its main index lost about 10 percent of its value, after the president issued a constitutional declaration Thursday giving himself sweeping new powers.

The statement assured that current precautionary measures are sufficient to handle the situation, stressing that there is no need for any measures that may hinder trading.

Meanwhile, shareholders made up for their early losses as deal hunters resurfaced ahead of a meeting by the president with judicial officials over the fallout from his constitutional declaration.

Orascom Telecom saw a remarkable recovery, recording a 5.5 percent increase. Commercial International Bank also soared by 3.6 percent.