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.
Just when things were getting better for investors in Tunisia they got worse again, according to a report in Monday’s FTfm.
Rather than spook investors, the 2011 Jasmine revolution had the perhaps unexpected effect of convincing investors that their investments would be safe from confiscation by the former ruling family.
This week the body of Yasser Arafat is due to be exhumed, the 18th Conference of the Parties to the Kyoto Protocol takes place in Doha, and we have financial reports from Essar Energy and Luckoil.
Sources: Reuters; Roubini; Fens