Stock market rises despite Monday riots

Violence clashes Monday night have had almost no effect on Egypt's stock markets, as indexes went up on Tuesday trading, proving that investor confidence in the Egyptian capital market has improved.
The main EGX30 index went up by 0.85 percent to reach 5358.9 points, while the EGX70, which measures the shares of small and medium-sized enterprises, rose by 0.94 percent to 427.6 points.
The broader EGX100 index, which includes large, small and medium-sized stocks, went up by 0.77 percent to hit 735.6 points. 
Egyptians investors turned to purchasing, while foreign investors tended to sell.
The stock market gained about LE2.4 billion, while the value of trading reached LE328.5 million through 15,450 transactions.
Ahmed Khaled, head of the research in a securities company, said that the state of the capital market is seeing a remarkable improvement, both in terms of the increase of purchasing power of investors, and in term of the continuous rises of indexes. These indicators, he claimed, prove investor confidence in the ability of the police and the army to deal with unrest on the streets.
Khaled added that the improvement in the security situation is the main factor contributing to the growth of foreign investments in the Egyptian market. Any protests by supporters of President Mohamed Morsy, would not affect the market at all, he claimed.
Capital markets expert Ihab Said said the market witnessed a remarkable activity during the Tuesday trading session, contrary to expectations, particularly after Monday's violent riots, which left seven dead and hundreds more injured.
Edited translation from Al-Masry Al-Youm

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