Fragile optimism at the stock market
Despite a strong rise at the opening of the day, the EGX 30 index has slightly dropped on Wednesday at -0.26 percent.
Tuesday saw the announcement and swearing in of the new government, characterized by the strong presence of investor-friendly liberal figures and technocrats.
The newly appointed Cabinet has been strongly rejected by the Muslim Brotherhood who have called for further demonstrations to contest its legitimacy and calling for the release of former President Mohamed Morsi.
Despite this slight drop, the main index EGX 30 has increased by 12.5 percent since the June 30 landmark, indicating the general optimism prevailing within the business community.
However, this slight drop points to the fragility of this current optimism. Rampant insecurity and political unrest could lie in the way of any economic recovery in the coming months.
The other indexes EGX 70 and EGX 100 have followed the same trend as the main index and closed on slight drops after a strong opening. The EGX 70 lost 0.98 percent while the EGX 100 dropped by 0.65 percent.
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