Stock market to resume trading on Wednesday

The Egyptian stock market will re-open on Wednesday, said its head, Khaled Serri Seyam. Trading has been suspended since 27 January.

The resumption of trading will allow investors to test the market on Wednesday and Thursday, and then use the weekend to consider the correct decisions to make.

Officials from Misr for Clearance, Depositary and Central Registry (MCDR) and the Egyptian stock exchange will meet on Sunday to lay down procedures for the injection of the Finance Ministry's assistance of LE250 million into the stock market.

Mohamed Abdel Salam, the president of MCDR, said the Egyptian cabinet has permitted the use of the Non-Commercial Risks fund–LE850 million–for loans to companies facing tough circumstances.

Awni Abdel Aziz, the head of the securities sector of the Federation of Egyptian Chambers of Commerce, said the amount of the loans will be approximately LE250 million.

Meanwhile, Standard & Poor's (S&P) took a step back from a potential downgrade of Egypt's long-term foreign currency credit rating on Thursday, citing improved prospects for political transition and saying that risks to the government's credit standing have receded.

S&P said "if the political transition falters or if concessional external financing does not materialize to finance fiscal deficits–which we forecast to be in the range of 9 percent to 11 percent of GDP for the next few years–then we could lower Egypt's ratings later this year or in 2012."

Translated from the Arabic Edition.

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