Egypt to Cancel Precautionary Measures on Stock Trading after Eid

Egypt will be cancelling after Islamic Eid Ul-Fitr vacation the precautionary measures at stock market transactions adopted following the outbreak of 2011 uprising.

In a statement on Tuesday, the market regulator, the Egyptian Financial Supervisory Authority (EFSA) and Egyptian Exchange said as part of their periodic review of market conditions, it was decided that the precautionary measures are no longer needed.

Accordingly, the price limits for stocks will be set at 10% during the session, while small and mid-cap stocks on NILEX will be allowed price limits at 5% upwards and downwards. In addition, the pre-opening session will be carried out in accordance with applicable rules and will be allowed the above stated price limits.

In this respect, EGX Chairman Mohamed Omran stated that the stock will be allowed to move 10% upwards and downwards during the pre-opening session and 10% during the official trading, adding that NILEX stocks will be allowed to move 5% during the pre-opening session and the official session.

For his part, EFSA Chairman Sherif Samy said it was decided to cancel the precautionary measures in light of the country’s improved political and economic conditions. Samy also welcomed a proposal to extend trading hours.