Egyptian stocks fell, entering a bear market, and dollar bonds dropped after the military curtailed the powers of the nation’s newly elected president. Three-month bill yields jumped to a record.
The benchmark EGX30 Index (EGX30) slumped 3.4 percent to 4,267.87 at the 2:30 p.m. close in Cairo, the lowest level in almost five months. The gauge retreated more than 20 percent from the peak of 5,452.03 on March 7, signaling a bear market to some investors. Orascom Construction Industries (OCIC) lost the most in more than eight months. The yield on the 5.75 percent dollar bonds due April 2020 climbed 12 basis points, or 0.12 percentage point, to 7.02 percent, the highest in four weeks, according to data compiled by Bloomberg.
The country’s ruling military council issued a declaration yesterday after polls closed in the first post-Hosni Mubarak election, giving itself sole authority over its affairs, including the budget and personnel. It also acquired the power to name the 100-member committee that will draft a new constitution, and objection rights to any articles drafted that are deemed “counter to national security interests.”
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