Monday, November 28, 2011

Today's Major Market Move: Egyptian Stock Market Up 5% in Tuesday's Session

As a result of the first parliamentary elections since the overthrow of Mubarak (combined with the global euphoria of yet another proposed EU bailout and positive U.S. retail sales data), Egyptian equities climbed over 5% in today's session. Here's the list of the top performing equity indexes:

Click here to go to the live table.

Today's move is a small step towards recouping the losses from 2011. Both main Egyptian equity indexes remain down over 35% for the year.

Click here to go to the live chart.

(The unusual shape of the above chart is due to the fact that Egyptian stock markets were intermittently closed during the initial uprising)

Here's some more color from the AP regarding the headwinds being faced by the Egyptian economy:
The near daily protests have ravaged Egypt's economy, battering the vital tourism sector, driving away foreign investors, put the Egyptian pound under pressure and sharply raised the country's borrowing costs and the costs of insuring its sovereign debt against default.

Late last week, ratings agency Standard & Poor's downgraded Egypt's sovereign rating by one notch, driving it deeper into junk status on the back of the clashes and expectation of continuing political instability.

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