Sons of Mubarak arrested, stock sell off induced

Sons of the long-term Egyptian president Hosni Mubarak, Alaa and Gamal Mubarak are arested on charges of stock market manipulations back to 2012. Yasser El Mallawany, non-executive vice chairman, board member of EFG-Hermes and Hassan Heikal, former member of the same board were arrested on the same case. There are three more bankers and stock traders detained on the same charges.

Alaa Mubarak, the eldest son of Hosni Mubarak is businessmen, the younger Gamal is known banker. They were charged in 2012 but released on bail in 2015. They are accused of stock market and central bank rules violating in attempt to make unlawful profits. Some view the accusation as politically motivated.

Charts by Bloomberg

Egyptian stock market has reacted with deepest dive since January 2017. EGX 30 index declined 3.6% which is lowest since February 2018. EFG-Hermes drops 8.6%, Qalaa Holdings falls 6% as Amr Al Kadi was disclosed among arrested. Investors are concerned about probable spill of the investigation to the other assets.

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