The international jury may still be undecided on the development of Egyptian politics and economics, but local investors have already handed down their verdict of enthusiastic support. The Cairo Stock Exchange has been one of the stellar performers this year with a gain of almost 45 per cent.
“This market rebound after a sharp drop in 2011 is driven primarily by local retail investors. The foreigners have not yet returned, and many of the high profile, rich Egyptians have moved their money out of the country,” said Khaled Abdel Majeed, chairman of the Middle East hedge fund manager Mena Capital.
“In many ways this is a relief rally driven by politics. Investors are relieved that a major confrontation between the new government and the military has been avoided. We were short Egypt for quite a while, but now we are long the market,” Abdel Majeed said.
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