Stock market benefits from peaceful election
The two main stock indices in Egypt both climbed sharply on the back of peaceful voting in the general election on Monday and Tuesday.
The EGX 100 closed 6.7% higher and the more exclusive EGX 30 index rose 5.4%, closing on 3,987.30, the biggest rise of any index in the world.
Although most investors were surprised by the sharp rise, it should be remembered that stocks have fallen 44.3% since the start of the year and are climbing up from a low level.
The good news was also mixed with concern that Standard and Poor the credit rating agency cut Egypt’s credit rating to B+ junk status last Thursday with a negative outlook.
Nevertheless, the first round of voting in the general election has been acknowledged as a success. Around 95% of all polling stations opened on time and the turnout was somewhere between 70% and 80%. The estimated turnout in the 2010 general election, the last under former president Hosni Mubarak was between 10% and 15%.