Egypt stocks jump to 1-month high after army ousts Mursi

Thursday, July 04, 2013 10:51 AM

DUBAI, July 4 (Reuters) – Egypt’s benchmark stock index surged to a one-month high at the opening on Thursday after the army overthrew president Mohamed Mursi and installed the head of the constitutional court as interim head of state.

The index rose 6.4 percent to 5,288 points, its highest level since June 3. The rise recovered sharp losses during June that were triggered by political unrest.

Although the country still faces huge political and economic challenges, many investors feel Mursi’s ouster could lead to a more technocratic government that address issues such as a sliding currency and ballooning state budget deficit.

”The technocrats will know how to deal with institutions – they will help the country financially because they have a clear agenda,” said Sebastien Henin, portfolio manager at The National Investor, an Abu Dhabi-based investment firm.

”There will be a definitive change to the business environment for international and domestic investors.” (Reporting by Nadia Saleem; Editing by Andrew Torchia)