Egypt’s stock market regulator eased rules on margin calls by brokerages in an attempt to limit volatility when the North African nation’s bourse opens after more than a month-long closure.
Brokerages now will require investors pay margins or present more collateral when the client’s debt reaches 70 percent of the shares’ value at the end of trading each day, the Egyptian Financial Supervisory Authority said in a statement on its website. Brokerages were allowed to make the margin calls at 60 percent earlier.
The bourse has been shut since the end of trading on Jan. 27 amid a popular revolt that ousted President Hosni Mubarak two weeks later. The benchmark EGX 30 Index plunged 16 percent in the last two trading days.
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