Egyptian equities jumped 4.4 per cent on Sunday after president Mohamed Morsi rescinded the controversial decree in which he extended his powers and plunged the country into a new wave of protests.
Investors clearly hope that Morsi has done sufficient to restore enough stability for the International Monetary Fund to implement its crucial planned $4.8bn loan. But has he? The opposition doesn’t think so – it is still demanding a delay on the planned December 15 constitutional referendum. Watch out for more seesawing in the markets, as the Islamists and the opposition fight it out.
After Sunday’s rebound, the market is still 8 per cent down since Morsi announced his presidential power grab on November 22. Since then Cairo and other cities have seen demonstrations by both the president’s opponents and supporters – and the country’s judges have protested at what they see as Morsi’s illegal decree.
No comments:
Post a Comment