Egypt bourse bars trading on 11 firms
Cairo, February 2, 2009
Egypt's stock exchange has blocked investors from short-selling, margin trading and intra-day trading the shares of three banks and eight other firms including Oriental Weavers and Ghabbour Auto.
Effective from next Sunday's trading session, Credit Agricole Egypt, Housing and Development Bank and Export Development Bank of Egypt shares will no longer be eligible for these specialised activities, the exchange said in a statement.
Short selling is the act of selling borrowed shares in anticipation of a lower future price. Margin trading involves buying securities with borrowed capital with the aim of amplifying profit.
Intra-day trading means an investor can both buy and sell a stock on the same day, which adds to a stock's liquidity.
The other companies barred from specialised trading are Alexandria Mineral Oils Company, El Ezz Ceramics and Porcelain, Delta Construction & Rebuilding, Giza General Contracting, El Nasr for Manufacturing Agricultural Crops and General Silos and Storage.
The exchange also added three other firms to a list of companies allowed to trade in this manner: Olympic Group Financial Investments, Maridive & Oil Services and Pioneers Holding.
The latter two firms were added to the CASE 30 index in its semi-annual rejig announced last week and made effective on February 1.-Reuters