Egypt Live Blog
Egypt stock index climbs for third straight day
Egypt's main index grew for a third straight day after president-elect Mohamed Morsi's victory boosted hopes for a smooth transition from military to civilian rule, despite lingering
uncertainty over how much power the new president would actually have.
The generals ruling Egypt since Hosni Mubarak's overthrow have dissolved the parliament - dominated by the Morsi's Muslim Brotherhood - and took more control over the writing of a new constitution.
Several politicians decried a "coup" by the generals, but the weekend declaration of Morsi's election victory over ex-military man Ahmed Shafik has raised hopes that Egypt is moving towards a coherent, effective government.
Back-room talks are now under way to forge a working relationship between Morsi and the military, which wants to keep a broad national security remit and protect wide-ranging business interests, and agree the composition of his government.
"It's positive that the military and Morsi have sat down to try to work out a roadmap," says Teymour el-Derini of Naeem Brokerage. "They've clearly agreed on something. There's going
to be a power struggle for decades, but there has always has been a power struggle."
The benchmark index climbed 0.4 percent to 4,628 points. Morsi's election win had pushed the index up 7.6 percent on Monday, the fourth-biggest gain since it was created in 1998,
and a further 2.9 percent on Tuesday.
Real estate company Palm Hills was among the biggest gainers, rising 2.8 percent on Wednesday, but other property developers declined, with Egyptian Resorts dipping 1 per cent and Amer Group 1.6 per cent.
"Real estate is seen as a hedge against currency and inflation risk," says Derini. The Egyptian pound this week reached its weakest rate since early 2005.