Egypt market capital falls LE25 billion after Mubarak’s sons arrested


The Egyptian Exchange’s (EGX) market capital fell by LE25 billion, closing at LE825 billion on Sunday, after police arrested two sons of former President of Egypt Hosni Mubarak – Alaa and Gamal Mubarak – alongside Hassan Hiekl, Ahmed Fathy and Yasser al-Malawani, over charges of stock manipulation.

Prosecution charged the defendants with obtaining LE2.5 billion through selling off al-Watany bank, in violation of Capital Market Law and Central Bank regulations.

Meanwhile, Egypt’s benchmark index (EGX 30) fell by 3.6 per cent, standing at 17,595 points.

Stocks of EFG-Hermes, of which al-Malawani was Vice Chairman since December 2014, decreased 8.45 percent.

The investment bank clarified in a statement that it is not a party in the case, and that its activities and operations are still ongoing under the current management.

Meanwhile, stocks of Qalaa Holdings went down by 6 percent, as Amr El-Kadi, the Head of Investor Relations and Risk Management, sat with a committee over charges of owning stocks in al-Watany Bank.

The company also denied that it was a party in the case, and assured that its activities would not be affected.


Edited translation from Al-Masry Al-Youm.

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