(AFP PHOTO/GIANLUIGI GUERCIA)
Reuters – Egypt’s bourse posted the biggest gain in the region on Sunday, rising 1.4 percent in thin trading as the country was readying a draft constitution for a national referendum.
The 50-member constituent assembly began voting on Saturday to approve the draft, article by article, and once this process is complete it will submit the document to interim President Adly Mansour, who will set a date for the referendum.
The adoption of a new constitution is a key part of the army-planned political transition plan meant to lead to parliamentary and presidential elections next year.
“Retail investors are reacting positively to these news,” said Mohamed Radwan, director of international sales at Pharos Securities.
Local retail investors, encouraged by the ouster of former president Mohamed Morsi in early July, have been the main force behind the rally that lifted Egypt’s bourse by about 40 percent from its late June low.
The relatively smooth progress of constitutional voting has boosted the mood of those investors, helping the market rebound after last week’s 4.2 percent negative correction, a Cairo-based trader said.
