Shares of the Market Vectors Egypt ETF (NYSE:
) soared late in Wednesday's shortened U.S. trading session on
news the Egyptian military has wrested control state television
as a deadline imposed for President Mohammed Morsi to compromise
with protesters or relinquish power has come and gone.
As expected, protests in already fractured Egypt started
gaining steam on June 30, the one-year anniversary of Morsi's
rise to power. Morsi, a member of the controversial Muslim
Brotherhood, claims he was democratically elected, but his time
in power has been marred by ongoing protests and a sagging
Egypt, North Africa's largest economy, is home to double-digit
unemployment, but the rate of joblessness among the nation's
young people is well above 20 percent. The Egyptian economy has
deteriorated so rapidly under Morsi's leadership that last month
index provider MSCI (NYSE:
) said Egypt is
on review for a possible demotion to frontier
. MSCI currently classifies Egypt as an emerging market.
At least 16 protesters have been killed and 200 injured in
recent days. Reuters reported that a national security adviser to
President Morsi said a military coup was already under way. The
agency also reported that authorities had placed a travel ban on
Morsi and other Muslim Brotherhood leaders,
according to CNBC
News of Morsi's possible loss of power has been a boon for
EGPT. The ETF surged almost six percent Tuesday on volume that
was more than six times the daily average and the lone Egypt ETF
is up another four percent Wednesday on volume that is nearly
quadruple the daily average.
reverse split on a one-for-four basis
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