The following are comments from analysts and economists in response to Egypt’s election result today. Mohamed Mursi, the candidate of the Muslim Brotherhood, beat Hosni Mubarak’s last prime minister, Ahmed Shafik.
Wael Ziada, head of research at Cairo-based EFG-Hermes Holding SAE:
“If we see a diversified, highly respected and qualified Cabinet being formed, the relief rally we’re likely to see may turn into a firm one.”
“There are still a lot of unknowns for the markets, which will be looking for direction from the street, the presidency and progress by the constitutional committee. A lot will depend on public acceptance of the dissolution of parliament and the constitutional declaration after Mursi’s win.”
Teymour El-Derini, Cairo-based director of Middle East and North Africa sales trading at Naeem Brokerage:
“Investors will take it in a positive manner. We won’t see a panic-selling attack. Markets will stabilize.”
“A lot of people will be happy, a lot of people will be upset and a lot of people are afraid. The Muslim Brotherhood waited for 80 years to get power and now they have it.”
“The country is split into two, that’s the bigger issue. The new president has to make everyone happy. There won’t be much patience.”
Ashraf Akhnoukh, Cairo-based senior manager for Middle East and North Africa markets at Commercial International Brokerage Co.:
Mursi’s win “bodes well for the market as it will alleviate concerns over a possible standoff between the Muslim Brotherhood” and the military.
Philippe Dauba-Pantanacce, Dubai-based senior economist at Standard Chartered Plc:
“The current institutional vacuum could jeopardize the very crucial aid and budget support that had been in the making for months now,” he said. “In the short term, Egypt could be on a verge of a disorderly devaluation, with foreign-exchange reserves dangerously low.”
“The new president arrives in a total institutional vacuum and in a seat essentially devoid of powers. There is no constitution to define the presidential attributions, allocate and distinguish the executive from the legislative powers.”
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