Egypt: investors nervous as politicians prepare new constitution | beyondbrics

With Egypt on political tenterhooks on Thursday as president Mohamed Morsi prepared to address the nation, investors were understandably nervous.

Egyptian shares slumped 2.6 per cent at the opening before recovering slightly to trade 0.9 per cent down on the day, and have lost 12.3 per cent since Morsi (pictured) last week precipitated the latest crisis by assuming increased powers.

Domestic bond prices, which had held onto the gains made earlier in the year, slumped on Wednesday, with the the yield on the benchmark 10-year issue soaring from 14.86 per cent on Tuesday to 15.50 on Wednesday. On Thursday the yield eased to 15.25 per cent.

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