Egypt’s rally: can it last? | beyondbrics – FT.com

The massacre that was widely expected when Egypt’s bourse finally reopened its doors after a revolution and several weeks of clumsily-handled closure has turned out to be nothing more than some slight bloodletting – followed by a dramatic rally.

After collapsing the maximum allowed by automatic circuit-breakers within seconds of opening on Wednesday – and closing down 8.3 per cent – the benchmark EGX30 index fell only 4.2 per cent on Thursday, and has jumped this week.

Indeed, the recent rallies have been so strong that the automatic emergency circuit-breakers that were put in place to prevent the bourse from collapsing completely have actually occasionally halted surges this week. On Sunday, the EGX30 closed up 5.3 per cent, and on Monday chalked up another 1 per cent gain.