Egypt Cancels Some Precautionary Measures in Stock Market

In the light of the developments taking place in the Egyptian stock exchange, market stability and trading rates returning to its normal levels, the Egyptian bourse decided, after coordinating with market regulator EFSA, to cancel some precautionary measures that were adopted after the revolution of January 2011. The market will be back to Price Discovery Session starting from August 7, 2014.  Price limits for the main market will be10% and NILEX 5%.
The Egyptian Exchange (EGX) also modified trading to be 4:30 hours. Trading session will start from 10:00 a.m. and ends at 2: 30 p.m. right after the holy month of Ramadan.

Dr. Mohamed Omran, EGX Chairman, stated that the recent stability helped us to cancel a number of precautionary measures adopted after the revolution of 2011.   The price discovery session will be has been updated with many amendments to truly reflect any development may occur since the closing of the previous day’s trading session. 

Omran said that these changes gives a clear message to investors that the Egyptian stock market has recovered from the events of recent years, and the situation in Egypt has returned to normal.  He added that acquisitions by foreign investors on Egyptian companies have risen significantly in recent months as well as Morgan Stanley announced keeping EGX in the emerging markets index, confirming the return of foreign investor appetite for the promising Egyptian market again.
Omran is optimistic that the coming period will witness a considerable interest in the capital market require increased trading hours.  He expressed confidence in the improved economic performance in the coming period and at the same time, the ability and readiness to contribute to the process of economic growth during the coming period.