The cost of insuring Egyptian sovereign debt against default rose more than anywhere else in the world in the past month, indicating investors have little faith in president Mohammed Morsi's prospects of restoring stability.
Egypt's credit default swaps increased 79 basis points to 486 during the biggest and most violent clashes since Mr Morsi was elected into office, with protesters threatening to boycott the draft constitution.
"It's definitely not a good sign," said Wafik Dawood, the head of institutional sales at Mega Investments Securities based in Cairo. "The rise reflects the lack of confidence in Egypt's economy from international institutions."
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