Egypt Bourse Suspends Trading as Stocks Spike 5%

Egypt's bourse on Tuesday spiked more than 5.0 percent in a buying spree sparked by the orderly start to voting in the country's first post-revolution election, leading to the suspension of trading.

The main EGX-30 index rose 5.08 percent or 191.93 points to touch 3,972.06, after weeks of political upheaval and deadly clashes between police and protesters that caused huge falls in the value of the local stock market.

The regulator said that intense buying by investors triggered an automatic suspension of trading, which occurs when the market moves by more than 5.0 percent.

The main index closed 8.35 percent down at the end of last week amid deadly clashes between police and protesters demanding the ouster of the military junta that took power when Hosni Mubarak was ousted in February.

An uncertain transition to civilian rule, labor unrest and sporadic violence had aggravated Egypt's economic slump during the months following a popular uprising that unseated Mubarak in February.

Last week Standard and Poor's ratings agency cut its long-term rating on Egypt by one notch to 'B+'.

But the first day of voting on Monday saw a turnout that was "higher than expected", election officials said, with the day winding down without any reports of violence.

Source: Agence France Presse

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