Egyptian stock market reopening delayed due to banks closure

Feb 14, 2011, 13:45 GMT

Cairo - The Egyptian stock exchange reopening has been set back until Sunday, four days later than originally planned, due to disruptions in banks' operations, the head of the bourse said Monday.

Protests staged at a number of banks have raised fears that the bourse may be affected, Egyptian Stock Exchange chairman Khaled Serry Seyam said.

The Egyptian Central Bank ordered banks to close nationwide Monday following strikes by workers at state-owned banks, with the workers alleging that corruption and rampant abuse was still taking place.

Banks will also be closed on Tuesday, for the national Mawled al- Nabi holiday commemorating the birth of the Prophet Mohammed.

The stock market was closed on January 30 after nationwide politial turmoil had sent the benchmark EGX30 index plunging by 17 per cent of its value in its last week of trading. In two days alone, some 12 billion dollars were wiped off the exchange's market value, according to some estimates.

Seyam had announced earlier that money transfers by ministers, officials and businessmen who have been banned from traveling outside Egypt were suspended and that will not be allowed to sell any shares until a further decision is made by the attorney general.

The 18 days of unrest eventually forced president Hosny Mubarak to step down on Friday.

Read more about Markets