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Egypt’s Stock Exchange to Stay Closed Until Measures in Place
February 21, 2011

Egypt’s benchmark stock index fell about 17 percent in two sessions before it closed on Jan. 28. Egypt’s benchmark stock index fell about 17 percent in two sessions before it closed on Jan. 28.
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The Egyptian stock exchange did not reopen on Sunday as had been expected, marking three weeks of closure due to upheaval surrounding the ouster of President Hosni Mubarak.

The 18 days of mass street protests that forced Mubarak to step down on Feb. 11 struck a heavy blow to the Egyptian economy. While banks have reopened, the stock market’s closure could raise investor doubts in the Egyptian economy’s ability to recover.

The stock exchange said it would announce an opening date later and that it would put procedures in place to prevent “market troubles” and allow for the market’s “gradual return to normal operation.”

The procedures include limiting trading for the first week to three hours a day and freezing trades for a half hour if the exchange’s base price moves more than 5 percent and for longer if it moves more than 10 percent.

Other steps that will be taken seek to protect individual investors and companies and encourage Egyptians to buy in to increase demand.

Egypt’s benchmark stock index fell about 17 percent in two sessions before it closed on Jan. 28. Initially, trade was halted while authorities put in place measures to curb any more sharp and sudden drops. Then strikes and bank closures prolonged the shutdown.

Associated Press