Trading the Egyptian Stock Exchange Shutdown

After being closed for nearly two months because of widespread civil unrest that eventually led to the downfall of Egypt's longtime ruler Hosni Mubarak, the Egyptian stock market opened for trading on Wednesday, only to see stock prices plummet and trading halted once again. Shortly after the Egyptian stock market opened, average share prices fell nearly 10%. The sudden drop in stock prices caused the exchange's circuit breakers to halt trading. Wednesday was supposed to be the first full day of trading since before the stock exchange was closed on January 27th. The previous stock market shutdown was due to another big drop in stock prices, as investors lost confidence in Egypt amid growing protests that engulfed the the country's capital of Cairo. The protests eventually turned violent and Vice President Omar Suleiman announced on February 11th that President Hosni Mubarak had resigned, just a day after Mubarak insisted that he would not be stepping down. Although the resignation of Mubarak and the reduced levels of violence were positive signs, there is still much uncertainty regarding Egypt's future. Investors who think that falling Egyptian share prices are a buying opportunity should take a look at the Market Vectors Egypt Index ETF EGPT, which seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the Market Vectors Egypt Index. Another investment option is the Market Vectors-Africa Index ETF AFK, which holds a more diversified portfolio of African stocks, with a significant portion of its portfolio invested in Egyptian stocks.