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

Ikea Foundation's Better Shelter has partnered with UNHCR for safer refugee hous
Ikea Foundation's Better Shelter has partnered with UNHCR for safer refugee housing
Better Shelter and the UNHCR recently joined together in providing refugees and displaced people with long-term housing units as global crises mount. But what is a Better Shelter and how does it help?
 
 
Germanwings Pilot Locked Out of Cockpit
Germanwings Pilot Locked Out of Cockpit
A new report says that a pilot of the crashed Germanwings airplane was locked out of cockpit at time of crash.
 
 
Governor Bruce Rauner orders Chicago Studio to return $10M Grant
Governor Bruce Rauner orders Chicago Studio to return $10M Grant
Governor of Illinois Bruce Rauner has ordered a movie studio to return a $10M grant. The Cinespace studio was awarded the $10 million state grant by his predecessor, Pat Quinn.
 
 
Ted Cruz Announces to Run for President on Twitter
Ted Cruz Announces to Run for President on Twitter
Texas Senator is first Presidential Candidate to officially announce to run for President in the 2016 election.