Index providor MSCI monitoring Egypt stock exchange access

Reuters, Thursday 24 Mar 2011

Egypt faces expulsion from the emerging markets index should trading remain interrupted or restricted

Index provider MSCI said on Thursday it would consult with investors on the function and accessibility of the Egyptian stock exchange after its re-opening following more than seven weeks of closure.

The stock exchange closed on 28 January amid mass protests that eventually toppled the 30-year rule of President Hosni Mubarak but opened on Wednesday to narrowly avert the 40-day suspension limit that would lead to expulsion from MSCI's closely followed emerging markets index.

"MSCI will monitor the future developments on the Egyptian Exchange and continue interacting with market participants to gather feedback on the functioning and accessibility of the Egyptian stock market," the index provider said in a statement.

Egypt's stock market suspended trade for half an hour in its second day of trade with its key index down more than 5 per cent.

MSCI told Reuters last week that the country could still be removed from the index if trading was frequently interrupted or restricted by price floors.

The index provider also said the implementation of planned changes to its Egyptian stock index would be postponed to an as yet unannounced date.

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