CAIRO, Egypt ? Egypt's stock market spiked early Tuesday, prompting a temporary suspension of trading, as Egyptians cast their ballots in a landmark parliamentary election that could serve as a milestone moment in the country's push to democracy.
The Egyptian Exchange's benchmark EGX30 index was up 5.45 percent by 11:35 a.m. local time, at 3,986 points. Trading was halted for about 25 minutes after the broader EGX100 index surged 5.01 percent within about 15 minutes of the start of trade. That index was up by 6 percent after trading resumed.
"We, as Egyptians, didn't expect the situation to play out like this," said Khaled Nagah, a senior broker at Mega Investments, referring to the elections that began on Monday and continued Tuesday. "There were expectations of violence, thugs and other troublemakers, but that hasn't happened."
The rally was a rare bit of good news in a market that has been among the worst performers in the world this year. Before the day's early rally, the EGX30 was down almost 48 percent so far this year, reflecting the broader troubles confronting the Egyptian economy in the months since Mubarak was driven from power in mid-February.
"This is the first time that Egyptians have felt this climate of democracy," Nagah said of the orderly way in which the voting was held on the first day of the election. "This gives people a sense of hope that their voices will be heard and that sense of optimism is contagious."
The massive turnout at the polls ? despite security concerns and turmoil over deadly protests and violence in the pre-election week ? has upstaged the demonstration that is continuing in Tahrir Square, downtown Cairo's roundabout that has served as the epicenter of the Jan. 25 uprising against Mubarak. The activists there are demanding that the country's military rulers step down and expedite the transition to a civilian government.
They have also complained about the newly appointed prime minister, Kamal El-Ganzouri, who had served in the same post under Mubarak in the 1990s. El-Ganzouri's appointment came after the previous interim civilian government resigned after days of violent clashes last week that left over 40 dead around the country ? with most of the fatalities in Cairo.
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.
Analysts were concerned the latest election for the parliament's lower house would be marred by violence or irregularities. But the biggest worry that has emerged for many Egyptians is that the conservative Muslim Brotherhood and other Islamist parties could walk away with a large share of the vote.
The voting is staggered over the next six weeks across Egypt's 27 provinces, divided into thirds with runoffs held a week after the first round in each location.
Officials have said that 500 pound ($83) fines would be levied against voters who fail to participate in the elections ? a hefty penalty in a country where rising prices and rampant poverty were main catalysts in sparking the uprising that pushed Mubarak from office.
black friday news gamestop albert haynesworth banana republic apple store academy barnes and noble nook
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.