Arab Today, arab today egypt stocks extend fall amid corruption probe
Last Updated : GMT 19:53:43
Arab Today, arab today
Arab Today, arab today

Egypt stocks extend fall amid corruption probe

Arab Today, arab today

Arab Today, arab today Egypt stocks extend fall amid corruption probe

CAIRO - Arabstoday

Egypt\'s benchmark stock index tumbled over 3 percent yesterday, pulling the market lower for a second consecutive day as investor worries mounted that an investigation into the head of a leading Mideast private equity firm signaled a major widening in anti-corruption probes. The Egyptian Exchange\'s benchmark EGX30 was off 3.2 percent by 1:15 p.m. Cairo time, building on the previous day\'s 3.43 percent decline. The drop pushed the index\'s year to date losses to over 30 percent - a clear reflection of the crisis of investor confidence confronting the Arab world\'s most populous nation in the wake of the uprising that ousted former President Hosni Mubarak. Brokers said the drop was fueled by authorities\' decision to ban Ahmed Heikal, the chairman of Citadel Capital, from traveling abroad and a decision late last week by an Egyptian government agency to rescind preliminary approval to sell 20 million meters of land to the Egyptian Resorts Company. One of ERC\'s board members is already under investigation for alleged links to violence against the protesters in the initial days of the uprising. \"It\'s clear people are panicked because of these decisions,\" said Khaled Naga, a senior broker with Mega Investments. Egypt\'s new military rulers and civilian authorities, under pressure from protesters to move forward more quickly with pledges to hold accountable former regime officials and businessmen seen as benefiting from links to Mubarak and the then-ruling National Democratic Party, have stepped up investigations against these individuals. In the span of about a week, authorities have ordered Mubarak detained in hospital, placed his two sons in detention in Cairo\'s notorious Tora prison and charged a former prime minister and two other ministers with corruption. Those moves have largely been welcomed as evidence of political reform. But the cozy links between the regime and top businessmen has also sparked worries that the investigations could affect some of the country\'s blue chip companies. Economists and analysts say that the rampant corruption in Egypt under Mubarak meant that success in business involved having to cozy up to the regime. While there needs to be a reckoning, it must be within certain bounds so that the broader economy is not affected, economists said. \"Instead of going after every businessman, they should be much more mindful of fixing the system so that it becomes more transparent,\" said John Sfakianakis, chief economist with the Riyadh, Saudi Arabia-based Banque Saudi-Fransi, adding that the new Egyptian government cannot simply \"react to popular sentiment\" calling for broader crackdowns. They should be looking at the system instead of the actors. The system was corrupt,\" he said. The order barring Heikal from travel, announced last week at roughly the same time that a government agency rescinded a deal to sell 20 million meters of land to ERC, appeared to be cases in point of how such allegations of cronyism could impact the market. The stock market\'s big board was awash in red. Of the 181 listed companies, 172 were posting losses, according to the exchange\'s Web site. Citadel\'s shares were down 9.59 percent, while investment bank EFG-Hermes saw its shares tumble 9.9 percent, according to information on financial data Web site, Zawya.com. Heikal, Citadel\'s chairman, had been a managing director at EFG before founding the private equity firm and the investment bank\'s shares appeared to be taking a beating in part because of his prior links to the institution. EFG, in a statement filed with the Egyptian Exchange, also said that its brokerage head, Sherif Cararah, had decided to resign effective June 30. The statement did not provide a reason.AP

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today egypt stocks extend fall amid corruption probe Arab Today, arab today egypt stocks extend fall amid corruption probe

 



Arab Today, arab today
Arab Today, arab today Saudis await visitors but will they come?

GMT 11:54 2017 Thursday ,23 February

Saudis await visitors but will they come?
Arab Today, arab today Sarah Belamesh designs antiques of "ceramic"

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"
Arab Today, arab today Blind sheikh buried in Egypt

GMT 06:32 2017 Thursday ,23 February

Blind sheikh buried in Egypt
Arab Today, arab today Media host Mona Iraqi stresses her show's success

GMT 15:32 2017 Wednesday ,22 February

Media host Mona Iraqi stresses her show's success

GMT 20:48 2017 Wednesday ,22 February

Dividend announcements drive Muscat bourse

GMT 16:56 2017 Wednesday ,22 February

Global gold prices drop

GMT 16:01 2017 Wednesday ,22 February

Tadawul edges down 0.2%

GMT 13:22 2017 Wednesday ,22 February

Canadian stock market closes at record high

GMT 11:50 2017 Wednesday ,22 February

Most Asia markets up as Hong Kong rebounds

GMT 20:52 2017 Tuesday ,21 February

Asia stocks consolidate recent gains; China shines

GMT 10:37 2017 Tuesday ,21 February

Most Asia markets up as rally presses ahead
View News in Arabic - Business: أسواق مالية
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today To hold social dialogue over secondary school

GMT 07:43 2017 Wednesday ,22 February

To hold social dialogue over secondary school
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Salma Rashid happy for 'A Whisper of Love'

GMT 05:19 2017 Tuesday ,21 February

Salma Rashid happy for 'A Whisper of Love'
Arab Today, arab today Milan laughs while Rome cries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 06:41 2017 Monday ,20 February

Janat pleased for issuing 'Good Morning'

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 14:29 2017 Monday ,20 February

Prepares to present her new collection

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact

GMT 23:29 2017 Thursday ,16 February

Home built on sand castles-style costs $8m

GMT 07:51 2017 Wednesday ,22 February

Mom's immune system accepts babies

GMT 17:46 2017 Saturday ,18 February

Tourist guide reveals methods of tourist attractions

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 19:10 2017 Friday ,17 February

Hats, scarves add beauty to women
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday