360° Coverage : Ousting Morsi may restore investors' trust: Experts

Ousting Morsi may restore investors' trust: Experts

Cairo, July 5 (IANS) Egyptian analysts expect investors to regain trust in their country, as profits of the Egyptian stock exchange reached 22.7 billion Egyptian pounds (over $3.2 billion) a day after the ouster of president Mohamed Morsi.

Jul 5 2013, 2:52am CDT | by

Ousting Morsi may restore investors' trust: Experts
Photo Credit: BULENT KILIC, Getty Images

Cairo, July 5 — Egyptian analysts expect investors to regain trust in their country, as profits of the Egyptian stock exchange reached 22.7 billion Egyptian pounds (over $3.2 billion) a day after the ouster of president Mohamed Morsi.

The hike in the stock market was described by observers as "noteworthy", as its losses in the first six months of 2013 was estimated at 54.4 billion Egyptian pounds ($7.7 billion), when the country was engulfed in heated unrest and political division between pro-Morsi Islamists and anti-Morsi liberals, Xinhua reported.

Ehab al-Desouky, head of the Economic Center of Sadat Academy, said the stock exchange's profit was a "practical reaction" to the new trend in Egypt after Morsi's ouster.

"The stock exchange's hike depends on the investing decision, and the investing decision depends on the investor's trust in the future more than his trust in the present, which means that the bourse's rise today reflects the investors' mounting hope about Egypt's future after ousting the one year-lasted regime," Desouky said.

Egypt's armed forces removed Morsi from his post Wednesday, and put a roadmap for the transitional period, including forming a national government with broadened powers, suspending the current constitution, and forming a commission to prepare for constitutional amendments.

Desouky said the roadmap "assured" the investors about the "near future" of Egypt, as the first thing the investors care is "stability".

However, he believes that ending the political conflict and putting a roadmap "aren't enough" for assuring the investors.

"Ending the political unrest, appointing an interim president, and putting a roadmap can only ensure the investors in the 'short term'. What Egypt urgently needs now to encourage investments is a 'powerful cabinet' for the sake of the long-term planning," the expert said.

Echoing Desouky's view, banking expert Bassant Fahmy said the stock exchange's rise was a "promising" sign about the investors' belief in a stabilised future.

"This elevation is a good indication for the investors' trust in Egypt's situation, but forming a cabinet of 'proficient' ministers is much more important for the investors than assigning a new interim president," Fahmy said.

He said the cabinet is directly responsible for putting forward policies to facilitate the investors' work and for meeting peoples' aspirations to end their "indignation".

Fahmy also said that the security situation would be "much better" after ousting Morsi, and would therefore be another key reason for investors to come in.

"Fragile security affected the investors' turnout during Morsi's time, and it was out of the weak management of his loyal cabinet. I believe that all faults of the former regime will be avoided in the future," said Fahmy.

IANS

Source: IANS

 
 
 

<a href="/latest_stories/all/all/8" rel="author">Luigi Lugmayr</a>
Luigi is the founding Chief Editor of I4U News and brings over 15 years experience in the technology field to the ever evolving and exciting world of gadgets. He started I4U News back in 2000 and evolved it into vibrant technology magazine.
Luigi can be contacted directly at ml@i4u.com. Luigi posts regularly on LuigiMe.com about his experience running I4U.

 

blog comments powered by Disqus

Latest stories

School headmaster shot dead in Pakistan
Islamabad, Dec 4 (IANS) Unidentified gunmen Thursday killed the headmaster of a private school in Pakistan's Balochistan province.
 
 
Four more bodies recovered from sunken South Korean ship
Seoul, Dec 4 (IANS) Four more bodies were recovered Thursday from a sunken South Korean fishing ship in the Bering Sea, the foreign ministry here said.
 
 
Lesbian couple asked to desist in London restaurant
London, Dec 4 (IANS) A lesbian couple in a London restaurant was asked to desist by a staff member, who asked them to "stop what you are doing".
 
 
Oxford Dictionaries to add 1,000 new words
London, Dec 4 (IANS) 'Mamil' (middle-aged man in Lycra), 'silvertail' (a person who is socially prominent or who displays social aspirations) and 'crony capitalism' are among the 1,000 new words to be added to OxfordDictionaries.com, the free online dictionary, in its largest quarterly update so far.
 
 
 

Latest from the Network

Australian researcher discovers first artwork by early human
Sydney, Dec 4 (IANS) An Australian researcher has discovered what is believed to be the first artwork created by a human. The simple zigzag pattern found on a fossilized shell from the Indonesian island of Java has...
Read more on Celebrity Balla
 
Insects compete with rats to clear garbage
New York, Dec 4 (IANS) Insects play a very important role in cleaning up cities and they compete with other pests like rats and pigeons in their endeavour, a study has said. Scientists sampled arthropods - such as...
Read more on Business Balla
 
School headmaster shot dead in Pakistan
Islamabad, Dec 4 (IANS) Unidentified gunmen Thursday killed the headmaster of a private school in Pakistan's Balochistan province. Police officials said the armed men opened fire at the vehicle of Zahid Ali,...
Read more on Politics Balla
 
Four more bodies recovered from sunken South Korean ship
Seoul, Dec 4 (IANS) Four more bodies were recovered Thursday from a sunken South Korean fishing ship in the Bering Sea, the foreign ministry here said. This increased the toll to 16, including six South Koreans and 10...
Read more on Politics Balla
 
Lesbian couple asked to desist in London restaurant
London, Dec 4 (IANS) A lesbian couple in a London restaurant was asked to desist by a staff member, who asked them to "stop what you are doing". Lydia Cawson, 29, said that she and her girlfriend were asked by a staff...
Read more on Politics Balla
 
Oxford Dictionaries to add 1,000 new words
London, Dec 4 (IANS) 'Mamil' (middle-aged man in Lycra), 'silvertail' (a person who is socially prominent or who displays social aspirations) and 'crony capitalism' are among the 1,000 new words to be added to...
Read more on Celebrity Balla
 
Oceans play key role in global 'warming hiatus'
London, Dec 4 (IANS) Increased heat uptake across three oceans - North Atlantic, the Southern Ocean and Equatorial Pacific Ocean - is the likely cause of the 'warming hiatus' -- the current decade-long slowdown in...
Read more on Politics Balla
 
Novel imaging to identify if TB drugs are working
Washington, Dec 4 (IANS) Tuberculosis patients who are not cured of the infection can develop multi-drug resistant TB and have to take as many as six drugs for two years. Now, researchers at University of Pittsburgh...
Read more on Business Balla
 
PM makes first appointment to High Court of Australia
Canberra, Dec 4 (IANS) Prime Minister Tony Abbott's government Thursday appointed former Victorian Supreme Court judge Geoffrey Nettle as the next Justice of the High Court of Australia. Attorney General George...
Read more on Politics Balla
 
18 suspected militants killed in Pakistan airstrikes
Islamabad, Dec 4 (IANS) At least 18 suspected militants were killed Thursday in airstrikes conducted by Pakistan Air Force fighter jets in North Waziristan. According to officials, the airstrikes were conducted in...
Read more on Politics Balla