Egypt Independent

Stock market loses more than LE88bn in first half of 2011

The Egyptian stock market lost LE88.5 billion of its market capital in the first half of 2011 and its indexes have gone down 12 to 25 percent.

Final bankruptcy rulings for individuals and companies rose by 235 percent during the first five months of 2011, with 57 cases compared to 17 the year before. Primary bankruptcy rulings rose by 11 percent, with 319 cases this year compared to 287 in 2010.
The stock market’s biannual report said the market capital of companies registered at the stock market was estimated at LE399.7 billion at the end of the first half of 2011, down from LE488.2 billion in 2010.
The stock market’s EGX-30 benchmark index has slumped 24 percent since the beginning of the year. The total value of trading in the first half of 2011 was estimated at LE87.8 billion. Foreigners generated net sales of LE3.1 billion, compared to LE134 million for Arab traders.
Stock market analysts meanwhile predicted that the market will rise and make up for its losses in the coming week despite protests staged on Friday. Mohsen Adel, managing director of Pioneers Investment Funds, said the stock market anticipated a rise as traders carefully monitor the political developments.
Translated from the Arabic Edition