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Egypt Stock Market Opens, Plunges, Triggers Circuit Breakers, Closes

Tyler Durden's picture




 

So much for that $25 million EGPT ETF as being a leading indicator. AP dscribes what can only be summarized as the funniest plunge-protection free market reopening in history: "Shares on Egypt’s stock exchange plunged Wednesday as the market
reopened after being shut for nearly two months because of the mass
protests that toppled former President Hosni Mubarak. Egypt’s finance minister was on hand as men dumped confetti on the trading floor to mark the resumption of trading. But within seconds of the opening, trading was once again halted as an intense sell-off drove shares below pre-set limits put in place to slow any sharp declines. The market reopened half an hour later. The benchmark EGX 30 index was trading down 9 percent at 5,137 points by early afternoon, recovering slightly from a drop of nearly 10 percent earlier. Finance Minister Samir Radwan called on investors not to panic." Of course, where some see panic, others may see responsible selling of liquid assets as the clusterflock of black swans is now flying high in the troposphere and following the Gulfstream.

Some more on this huge market manipulation PR disaster:

“We’re urging people to hold on to their shares and not be hasty. You might regret it” if you sell, he told reporters at the exchange.

The Egyptian Exchange had been closed since Jan. 27 as demonstrations paralyzed the Arab world’s most populous nation.

Wednesday’s reopening came under tight security. Armed military vehicles were posted at the ends of a street leading to the exchange. Soldiers armed with machine guns were posted outside.

Although rapid, the drop did not come as a surprise. Analysts had expected sharp losses as investors pulled their money from the market amid ongoing investigations of former regime officials and some of the country’s top businessmen whose companies are listed on the exchange.

“I was not surprised at all. It’s something to be expected give the market was offline for 7 weeks,” said John Sfakianakis, chief economist for the Riyadh, Saudi Arabia-based Banque Saudi-Fransi, of Wednesday’s plunge. “The situation in Egypt has not created confidence among international and of course local investors.”

Egyptian officials had tried to shore up confidence ahead of Wednesday’s reopening, including the appointment of a new temporary head following the resignation of the bourse’s former chairman.

Yet the joke may be on us as Buffett sets off to conquer the dip in yet another country, whose government will have no option but to rescue the octogenarian once he bcomes TBTF on yet another continent.

 

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Wed, 03/23/2011 - 07:35 | 1089166 HelluvaEngineer
HelluvaEngineer's picture

Do over!  Hopefully Buffett is BTFD with both hands.  On the other side of the pond, looks like futures just shit the bed.

Wed, 03/23/2011 - 07:46 | 1089185 Sophist Economicus
Sophist Economicus's picture

"On the other side of the pond, looks like futures just shit the bed"...

Looks more like a fart -- US futures still look flat as of now...

Wed, 03/23/2011 - 07:38 | 1089167 Sophist Economicus
Sophist Economicus's picture

Buffet buys Egyptian National Railways!

Wed, 03/23/2011 - 13:07 | 1090952 slewie the pi-rat
slewie the pi-rat's picture

lol X 3! 

go great w/ the egyptian nat'l banks he and G/S pocketed a few months ago, eh?

tell norton there is a RACOON MEETING FRI NITE, 'k?

t.y.!  and give reginald van g. my very, very best!  see ya friday @ the lodge!

Wed, 03/23/2011 - 07:38 | 1089169 jbc77
jbc77's picture

This is to funny. The whole world needs to be propped up. The global finanical system has become nothing more than a laughing stock.

Wed, 03/23/2011 - 08:41 | 1089351 dark pools of soros
dark pools of soros's picture

is there a derivative ETF on laughing now?? is it safe to short?

Wed, 03/23/2011 - 13:24 | 1091032 RmcAZ
RmcAZ's picture

Ticker symbol ROFL.

Wed, 03/23/2011 - 07:40 | 1089170 MiningJunkie
MiningJunkie's picture

Buffett makes me ill - what a self-promotional windbag.

Wed, 03/23/2011 - 07:40 | 1089176 John Law Lives
John Law Lives's picture

Amen!  That miserable SOB is also an outspoken advocate for the Federal Estate Tax (i.e. the Death Tax).

Wed, 03/23/2011 - 08:42 | 1089356 dark pools of soros
dark pools of soros's picture

he hates his arty granddaughter - probably hates all his relatives

Wed, 03/23/2011 - 07:40 | 1089173 John Law Lives
John Law Lives's picture

I suppose The Ben Bernank doesn't have a "Pump Egypt Futures" button on his PC.

Wed, 03/23/2011 - 08:00 | 1089227 scatterbrains
scatterbrains's picture

oh I'm sure he does. If they let Egypt markets collapse it's by design.

Wed, 03/23/2011 - 08:04 | 1089249 John Law Lives
John Law Lives's picture

Egypt's markets are a reflection of Egypt's condition.  Egypt is in chaos.

Wed, 03/23/2011 - 07:42 | 1089178 FischerBlack
FischerBlack's picture

Bullishness among fund managers towards global equities is at the highest level since Merrill Lynch began surveying them in April, 2001.

http://www.cnbc.com/id/41600804

Wed, 03/23/2011 - 07:43 | 1089181 RECISION
RECISION's picture

Can't just leave a market to find it's own level can we.

All the gamers at the casino need to have their hands held - or even better, have their loses made good...

Even the concept of a free market is mostly inconceivable now.

Wed, 03/23/2011 - 07:47 | 1089190 John Law Lives
John Law Lives's picture

There is no such thing as true price discovery in a centrally planned market.  The markets are completely manipulated.

Wed, 03/23/2011 - 08:57 | 1089415 disabledvet
disabledvet's picture

what kind of bird you got readying for flight there RECISION?

Wed, 03/23/2011 - 13:09 | 1090971 slewie the pi-rat
slewie the pi-rat's picture

 

lQQks like a Green Eagle. f'n awesome! whatever it BE!

Wed, 03/23/2011 - 18:17 | 1092561 RECISION
RECISION's picture

Not sure exactly what species.

But here is a link to a bigger pic.

http://recision.wordpress.com/2011/03/23/birdie/

Wed, 03/23/2011 - 07:44 | 1089184 John McCloy
John McCloy's picture

  Sometimes this shit is too hysterical to be true. The topper is Radwan after the crash with his all is well, "Do not panic". He should have got on the loudspeaker and said, " I assure you I have a PHD from MIT..all is well" 

Wed, 03/23/2011 - 07:56 | 1089220 HelluvaEngineer
HelluvaEngineer's picture

Here's where we need the Naked Gun "nothing to see here" pic.

Wed, 03/23/2011 - 08:00 | 1089230 John McCloy
John McCloy's picture

I miss that one. In the meantime perhaps this will cheer you up.

http://www.youtube.com/watch?v=rSjK2Oqrgic

Wed, 03/23/2011 - 07:46 | 1089189 A Man without Q...
A Man without Qualities's picture

I mean for fuck's sake, what do you expect?  Most Egyptian companies owe their success to the Mubarak regime, with years of "gifts" to secure contracts and export licenses etc.  When you remove this regime, everything is up for grabs, contracts will be questioned.  So, a 10% drop is just a starter.... as Rumsfeld said, "democracy is messy."

Wed, 03/23/2011 - 13:20 | 1091020 slewie the pi-rat
slewie the pi-rat's picture

hey!  at least they pulled the plug when the indx was still positive 4 da day-0.  no bidz?

and tyler sez:  "Of course, where some see panic, others may see responsible selling of liquid assets as the clusterflock of black swans is now flying high in the troposphere and following the Gulfstream."

Topo Gigio , following Prince, has re-tooled as TROPO Gigio, after 18 Ed Sullivan appearances, formerly known as, no less.  nice fukin ears, too, eh?  Tropo sez:  FLEE! FLEE!  pics?

TROPO gigio - Google Search

Wed, 03/23/2011 - 07:51 | 1089204 AccreditedEYE
AccreditedEYE's picture

A glimpse of what would happen in U.S. markets if true price discovery was allowed to occur. lol

Wed, 03/23/2011 - 07:56 | 1089218 John McCloy
John McCloy's picture

   You mean evil evil deflation? The Bernank will fight till the last taxpayer is auctioning off their terms of indentured servitude on Ebay to prevent that.

Wed, 03/23/2011 - 08:18 | 1089289 bingaling
bingaling's picture

if only there was a way to have massive liquidity while currency strengthens . A central bankers wet dream .

Wed, 03/23/2011 - 07:54 | 1089209 prophet
prophet's picture

Plunge Promotion Team.

Wed, 03/23/2011 - 07:53 | 1089212 Thorlyx
Thorlyx's picture

What about the stock market in Tripolis ? What is the leading index there doing ?

I guess it's firmly up on the good news about reconstruction work planned ahead.

Wed, 03/23/2011 - 08:06 | 1089253 Judge Judy Scheinlok
Judge Judy Scheinlok's picture

In other news The Reston 6 open a new branch in Cairo affectionately called by the locals The 6 Vanquishers.

Wed, 03/23/2011 - 08:18 | 1089286 virgilcaine
virgilcaine's picture

The flower confetti was a nice touch.. for a Cairo funeral.

Wed, 03/23/2011 - 08:32 | 1089327 Hannibal
Hannibal's picture

ONE BIRD IN YOUR HAND IS MORE THAN TEN IN SKY

Wed, 03/23/2011 - 08:41 | 1089362 Blano
Blano's picture

Where is the Egyptian Cramer to tell everyone to "BUY BUY BUY???"

Wed, 03/23/2011 - 13:26 | 1091035 slewie the pi-rat
slewie the pi-rat's picture

 

swimming in da Nile?

t.y., mr bones!

Wed, 03/23/2011 - 08:57 | 1089416 Downtoolong
Downtoolong's picture

What a world; markets shutting down when you don't want them to, and nuclear reactors staying on when you don't want them to. Is the heat on?

 

Wed, 03/23/2011 - 10:06 | 1089738 gwar5
gwar5's picture

That's a strange looking graphic. Straight up, straight down.. the Rock of Gibralter, or Half Dome in Yosemite.

Wed, 03/23/2011 - 10:05 | 1089746 Seasmoke
Seasmoke's picture

you call that a plunge ?

Wed, 03/23/2011 - 10:51 | 1090059 Bansters-in-my-...
Bansters-in-my- feces's picture

Ponzi comes to mind.

Wed, 03/23/2011 - 14:51 | 1091468 Diogenes
Diogenes's picture

What a picture, dumping confetti on the trading floor to reopen the market followed by... everyone dumping confetti on the trading floor and reclosing the market ROFLMAO

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