When a country experiences unexpected problems..Frank D.2FV5

Overview• Japan:• Influence on stock markets• Efforts to minimize losses

• Egypt:• Influence on stock markets• Efforts to minimize losses

• Conclusion

Japan• Earthquake and tsunami on Friday March 11 2011• Changes on stock markets on Monday March 14 2011:• UK: London – FTSE 100• Germany: DAX• France: CAC 40• USA: Dow Jones & Nasdaq• Asia:

• Japan: Nikkei 225• Hong Kong: Hang Seng• Korea Composite Index

• Companies affected: • Luxury retailers, • Insurance companies

European stock markets

North American stock markets

Asian stock markets

Efforts to minimize losses• Emergency funding for the Japanese market:• Monday March 14 2011: 130 billion euros• Tuesday March 15 2011 : 48 billion euros

• Stock market losses due to “temporary factors”• Noticeable recovery on graphs

• Keeping the Japanese markets open!!

Egypt• Political instability caused closure of EGX, January 27• Index dropped 18% in the 2 days before closure• EGX closed again after opening on March 23: 10% drop• Opening forced by Morgan Stanley Capital International Index • EGX remained closed: Egyptian companies suspended from MSCI• New chairman appointed on opening day

• Reopening had already been delayed 5 times.

EGX

Efforts to minimize losses• Shorter trading day for the first week• Stock market get suspended if it drops 5 to 10% in one day• A 30 million euros fund to be invested in the market

Conclusion• Serious problems can occur with unexpected events• Government: actions to minimize losses• Keep the stock market open!