The main index of the Egyptian stock exchange rose 1.95 percentage points Thursday, continuing to recovering from significant losses sustained earlier this week.
Stocks had been hit hard Monday and Tuesday, with the EGX 30, the main index, losing a combined 4.79 percent, after the government banned Orascom Construction Industry founders from travel and accused the company of evading LE14 billion in taxes.
Many of the market’s blue chip stocks responded negatively to these new measures, which they predict will make it more difficult to do business at home and aboard.
Thursday’s recovery saw stocks across most sectors recover a portion of the week’s losses, with 133 of 169 total listed stocks seeing an increase in value.
An exception was cement companies who are facing higher prices for fuel.
National cement stock fell 1.76 percentage points, Suez Cement fell 0.27 percentage points and Alexandria Cement fell 0.07 percentage points.
Reuters reported that analysts predict that the market would continue to trend downward amid continuing political disorder, and ahead of a court ruling expected Saturday that could trigger violence.
Port Said Criminal Court is set to issue a final verdict for 70 defendants accused of killing 72 football fans after a match in the city in February last year. Residents have launched a city-wide civil disobedience campaign, and violent clashes between protesters and police have ensued in the crucial canal city for three weeks.
Reuters quoted Hany Helmy, head of Shorouk Beverage company’s board of directors, told the agency that the market was going down because of the troubled economy and the government’s political performance, and he advised investors to be cautious.
