The stocks of leading Egyptian companies experienced heavy losses Wednesday as trading resumed after a six-week hiatus caused by mass protests that ousted former President Hosni Mubarak.
The market lost around LE34 billion of its capital in the first few seconds of trading before the session was suspended for half an hour.
The slump was attributed to the fallout of leading stocks, including Ezz Steel, Orascom Construction Industries, Palm Hills Developments, Hermes and Talaat Moustafa Group. The owners of those companies face corruption charges or are linked to Mubarak's regime.
State-run news agency MENA said market capital dropped to LE373 billion, down from LE407 billion, before the trading resumed.
The stock market administration decided to suspend trading of several stocks, including Ezz Steel and Amer Group, until it receives answers as to whether their owners' assets have been frozen.
Stock brokers said Egypt's main stock market index, EGX30, reduced its losses to 8.9 percent after falling 9.9 percent at the beginning of trading.
The massive buying of Orascom Telecom (OT) stocks supported the index. The value of OT’s stocks rose from LE3.32 to LE3.5 and those of Sinai Cement–owned by businessman Hassan Rateb–also rose from LE41 to LE50.
