Investors have punished Egyptian president Mohamed Morsi for his power grab. Egypt’s benchmark equity index plunged 9.6 per cent on Sunday, the first trading day since Morsi’s decision to award himself sweeping new powers prompted nationwide demonstrations.
That still leaves Egyptian shares over 35 per cent up on the year. But it won’t take long to lose more of those gains if there is any doubt about the implementation of the International Monetary Fund programme announced last week. Without it, Egypt will face an immediate financial crisis. Continue reading »