Egypt Live Blog
Egyptian stocks bounce back from five-month lows.
Egyptian stocks <.EGX30> jumped more than 4 per cent on Monday following a 3 per cent climb on Sunday, bouncing from five-month lows after the election of the Muslim Brotherhood's Mohamed Morsi as president.
The cost of insuring Egypt's debt against default fell 17 basis points to 705 bps in the five-year credit default swap (CDS) market, according to Markit.
Egyptian stocks fell 10 per cent last week and CDS hit 3-1/2 year highs on worries Egypt could escalate into violence following accusations of electoral fraud and the ruling military council's dissolution this month of the Islamist-led parliament.
"The confirmation of Mohamed Mursi as President of Egypt confirmed our view that recent events were not a coup," said Emad Mostaque, Middle East and North Africa strategist at Religare in a client note.
"We have been very constructive on Egypt despite recent weakness and would be strong buyers."