Egypt bourse retreats on political uncertainty

Reuters – Egypt’s bourse retreated because of uncertainty over the timing of a hoped-for presidential bid by Field Marshal Abdel Fattah al-Sisi.

An  official government source said Sisi would keep his post as defence minister in a new government that is being formed after the old one unexpectedly resigned on Monday.

Mohamed Radwan, director of international sales at Pharos Securities in Cairo, said investors assumed Sisi – the market’s favourite for president – would not declare a bid for the post while he remained a minister.

Most investors still think Sisi is likely to run in and win presidential elections expected sometime in coming months, but there is disappointment that the announcement of his bid may not be imminent. The main stock index fell 0.4% to 7,998 points, down for a second session since Monday’s 65-month high.

‘The market broke the 7,500 level smoothly but it will struggle to make gains here, and might make up for the missed correction at that level,’ Radwan said.