Egypt traders glued to television as Mubarak faces trial

Traders were glued to television screens to watch the opening of trial of former President Hosni Mubarak, but many said it is not clear how share prices will be affected.

The benchmark index has fallen by 5.6 percent since July 17, mainly on concerns over political uncertainty, and on Wednesday closed at a 12-week low.

Hisham Metwally of Arab Finance Brokerage said the market should get a substantial boost from seeing justice meted out to Mubarak, who is the first Arab ruler to appear in court since uprisings swept the region.
"It means that corruption will end in justice, so everyone will never try to engage in corruption because they now know how it will end," he said.

Analysts said Egyptian shares may come under pressure after Asian stocks fell more than 2 percent on increasing fears that Washington's efforts to cut spending will slow growth at a time when global factory output is already stagnating.

Mubarak is the first Arab ruler to appear in court since uprisings swept the region.