print logo

Daily News Egypt: Ezz verdict pushes Egypt market lower

The index closed down 2.7 percent to 4,365 points and Ezz Steel was down 8.9 percent before the bourse suspended trading.
16.09.11 | Interesting article at Daily News Egypt

Egypt's main index closed lower after a court sentenced Ezz Steel's former chairman, Ahmed Ezz, to 10 years in jail on graft charges and fined him, along with a former official, LE 660 million ($110.9 million).

The index closed down 2.7 percent to 4,365 points. Ezz Steel was down 8.9 percent before the bourse suspended trading on the stock "pending the firm's replies to inquiries," the bourse said in a statement, without disclosing further details.

"The biggest impact on the index today was the court verdict regarding Ahmed Ezz, owner of Ezz Steel, which in turn impacted all other stocks," said Hisham Metwally of Arab Finance Brokerage.

"The political risk in Egypt is a big factor. People are afraid of weekly Friday demonstrations," said Metwally, referring to planned demonstrations on Friday September 16 to protest against the state's re-activation of emergency laws after protesters raided the Israeli embassy on Friday Sept. 9.

"Now any investor, big or small, will stay on the safe side, choosing to exit the market on Friday, his money with him, and start again on Sunday," said Metwally.

National Societe General Bank fell 9.5 percent, Commercial International Bank was down 8.7 percent, and SODIC shed 7.6 percent.