Egypt stocks surge after Mursi annuls controversial decree
Cairo: Egyptian stocks rose by nearly five percent on Sunday after President Mohammed Mursi annulled his controversial constitutional decree that gave him sweeping powers, triggering almost three weeks of political turmoil.
Egypt's benchmark EGX30 index gained a vigorous 4.61 percent, closing the day out at 5,061 points. The broader-based EGX70 index also registered gains, rising by 2.66 percent.
Of 159 traded shares, 126 chalked up gains for the day while only 16 suffered losses.
"Investors are optimistic that the constitutional crisis might finally be coming to an end. There is an apparent decline in systematic (market-wide) risk, coinciding with political developments," Hani Geneina, head of research at Cairo-based Pharos Investment, told Ahram Online.
Analysts say the rest of the week looks promising for the local stock market, as Egyptian and Arab investors will be heartened by the relative political stability.
"With violence and confrontations unlikely to continue, the stock market is expected to extend its gains into the remainder of the week," Geneina asid.