This page has been archived and commenting is disabled.
Egypt Suspends Trading In Numerous Stocks On Concerns Of Market Manipulation
Currency devaluation in Latvia, government overthrow in Romania, and now blatant market manipulation in Egypt. Surely this all will somehow result in record bonuses on Wall Street. Bloomberg reports that Egypt's EGX70 index fell the most in two months after the "stock exchange suspended trading in 26 small and medium-sized companies on concern that some share prices may have been manipulated." At least the US stock market, the paragon of virtue that it is, is sure to never have to suffer the same indignity.
The EGX70 Index, a measure
of small and medium-sized companies, fell 2.9 percent, the
biggest decline since Aug. 17, to 848.88 at the close in Cairo.
The index has surged 76 percent this year, outpacing the
country’s benchmark EGX30 Index, which has gained 48 percent.
The decision “definitely had an impact, mainly on the
small caps,” and increased “negative sentiment,” said Ashraf
Akhnoukh, a senior equity sales trader at Commercial
International Brokerage Co. in Cairo.
The stock exchange suspended 26 companies, many of them on
the EGX70 Index, including Egypt Contracting Mokhtar Ibrahim,
Rakta Paper Manufacturing and GMC Group for Industrial
Commercial & Financial Investments, from trading because of
gains in the stock price that have not been driven by “material
events,” according to a statement on the exchange’s Web site.
“The suspended companies had their share prices increase
significantly in a very short period,” said Khaled Seyam,
deputy chairman of the Financial Regulatory Authority. “There
had to be a bold decision.” The suspensions remain until the
companies disclose their “future plans” and appoint an
independent financial advisers to determine the shares’ “fair
price.”
Picture that: stocks suspended from trading after their gains have not been supported by fundamentals. How plain silly.
Whether the market manipulation stems from insiders or from the government is not quite clear. Some countries like Japan have had an open market intervention policy into equities by the government for years. And somehow the US is not only insulated from claims that greater forces determine stock prices, but any such allegations are promptly met with ridicule. At some point, when the Fed is finally audited, one hopes all fears to the contrary will finally be put to rest. After all the Fed has nothing to hide. However, the lack of any "alleged" market manipulation does not explain why the Fed is still dead set against bills such as HR1207, which at last check had an unprecedented 301 supporters.
h/t Hedge Your Mind
»
- 2955 reads
- Printer-friendly version
- Send to friend
- advertisements -
Goldman Sachs quietly shuts down operations in Egypt...
Have they identified Government Sachs as the manipulator?
At this point, it becomes implied.
Vampire Squid response (using a really bad Rodney Dangerfield impression): "Hey, I have eight arms, you know..."
http://longorshortcapital.com/wp-content/goldman_sachs_squid.jpg
Do the think pump and dump is immoral?
Wouldn't it be interesting if it came out that we have been buoying their markets without their knowledge or consent?
"paragon of virtue" beautiful
I find it more shocking that Egypt even had a stock market.
TD's comments on this article show aptness in bathos, parody, metaphor and a touch of irony. Bravo!
After JP Morgan got caught in Poland,
http://www.reuters.com/article/regulatoryNewsFinancialServicesAndRealEst...
they set up shop in Egypt. Good thing we have the SEC to prevent that from happening here.
That's impossible. JPMorgan is a legit outfit.
Market manipulation is illegal in the US, they be laws and stuff writ about it, an we gots watchdogs that be makin shore we dont have nuthin illegal.
After JP Morgan got caught in Poland,
http://www.reuters.com/article/regulatoryNewsFinancialServicesAndRealEst...
they set up shop in Egypt. Good thing we have the SEC to prevent that from happening here.
Great find!!
Speaking of HR 1207, I would like to give my home state of GA some massive props. As of 9/23/09 we welcomed The Man, The Legend, The Hero, The Honorable Representative John Lewis onboard the audit-the-fed train (for y'all ignant folk, this is the at MLK's side John Lewis). While his office told me they have been lobbied quite minimally on this issue, I sincerely hope (and will continue pressing) Rep. Lewis understands that an out of control Fed directly impacts people of DeKalb County. His constituents and my neighbors face generations of poverty due to the Fed's malfeasance, and I can only hope he pursues this issue as fervently as he did Civil Rights.
Amen.
As a fellow GA denizen, I'd be interested to hear your take on Johnny Isakson's quest to extend and increase the real estate tax credit? Many in DeKalb and other Atlanta metro area counties would love to see this go through, but I see it as being part and parcel to the very same out-of-control actions you mention by the Fed. Thoughts?
Isakson is the go to guy for the real estate lobby in Washington. He made his fortune in RE and will do whatever he can to access the federal purse to support the RE industry and protect it from market forces (read loss or failure). The sad thing is that whatever Isakson does to momentarily support the crumbling RE market, the actions will delay the inevitable finding of a true bottom to price, add billions in needless federal debt and ultimately inflict more pain on the residents of Georgia and the nation all in the name of protecting commissions for his fellows.
I'm very torn about that. From my work in GA politics I am for anything whatsoever that raises GA's profile and prominence in the capitol. I also have several friends who in true GA fashion might not be too hip to how Wall St does things but are quite cunning on street level (but importantly, we don't take from someone else's mouth to get ours). So extending the tax credit per Isakson would materially help my kinfolk.
But on a larger scale there is no question that an extension would set us up for a 2012 that would make 1991 look like a cakewalk once all those supercharged zero-equity overpriced mortgages start to show massive losses.
I personally think this country is beyond fucked and beyond saving, at least in its current form. So in anticipating a more fragmented future for this country, if my people can use the extension to get ahead then I'll take it.
PS: when I was working on the Hill Isakson called me a few times on the wrong number tip...it was immensely gratifying to call up the senator's office and say "Can you please tell Isakson's mom to stop calling me"
Just to spell it out: the equity market in freaking EGYPT has more integrity than the US equity market.
I'm kinda beginning to believe that most of them do... shocker isn't it...
Trade like an Egyptian!
In the words of Captain Renault, "I'm shocked, shocked to find that gambling is going on in here!"
As someone that spends significant time on researching and analyzing international issues I welcome the apparent increased attention to various international markets and activities here at ZH.
I have to wonder if this move in Egypt will form part of an effort within the OIC specifically and the developing world generally into the dynamics of manipulation for fun & profit by some at the expense of these nations, regions, their oligarchs and populations.
Absolutely...The "JP Goldman" tentacles extend world wide, and the economic downturn is also world wide.
Why suspend trading due to correction? I bet the same will be legislated once we put in a high. NO SHORTS ALLOWED for the sake of Homeland Security. All longs will be trapped in a Japanese style zombie stock exchange.
Never have so many owed so much to so few.
I got Vampire Squid t-shirts for all of my colleagues for Halloween.
www.printmojo.com/bulatus
Still trying to login...