Egypt halts trading Wednesday after index drops nearly 10%

Abu Dhabi: Trading on Egypt's benchmark EGX30 stock exchange was halted on Wednesday morning after the index declined almost 10 per cent following a nearly two-month closure triggered by the unrest that toppled Hosni Mubarak.

Finance Minister Samir Radwan said trading was suspended after the bourse fell 9.93 per cent and the EGX 100 Index fell seven per cent amid intense selling pressure and low investor confidence.

The Egyptian Financial Supervisory Authority, which regulates financial markets, said last month trading would be halted for 30 minutes if the EGX 100 Index fell more than 5 per cent.

If the drop extended to 10 per cent, he said trading would be suspended for a period to be set by the head of the exchange.

Egypt's cabinet appointed Mohammad Abdul Salam, head of the state-run clearing house, on Monday to supervise the bourse for six months, replacing Khalid Seyam, who resigned.

The EGX 30 has been closed since January 27 after two consecutive days of losses that saw it slump over 16 per cent.