Stock exchange on the rise but uncertainty remains

The Stock Exchange was still on the rise on Wednesday. The EGX30 index increased by 0.66 percent. Meanwhile, the EGX 70 increased by 2.67 percent and the EGX 100 rose by 1.82 percent.

This slightly positive trend could be interpreted as the relief resulting from the US$8 billion dollars of aid and grants sent by Saudi Arabia and UAE to address the slump in foreign reserves facing the country.

Foreign reserves had once again fallen below the symbolic 15 billion dollar threshold at the end of June.

However, the cold reactions following the issue of the constitutional declaration yesterday mitigated that positive outlook to some extent.

Yesterday also saw the nomination of Hazem al-Beblawi as prime minister. He gave no timeline for the formation of a government and conceded the process could take some time. Despite Beblawi’s strong market-friendly credentials, the outlook of a longer transition period seems to have mitigated the news of his appointment.

Beblawi indicated he would offer ministries to the Muslim Brotherhood’s Freedom and Justice Party. However, the Brotherhood considers the military appointment of Adly Mansour as interim President to be illegitimate.