The military has ousted former Egyptian President Mohamed Morsy from Office

The military has ousted former Egyptian President Mohamed Morsy from Office

Analysts are optimistic that the ousting of President Morsi may presage a brighter future for Egypt’s economy.

Stocks in Cairo rose by 7% on Thursday on the news, their largest one-day percentage gain in over a year.

Traders are hoping that Egypt’s prospects will improve in the absence of Mr Morsi, even though the country’s battered economy remains in crisis.

Some analysts said a long-stalled loan from the IMF may now be possible, although others remained sceptical.

“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,” he added.

Window of opportunity
However, for Dina Ahmad, a strategist at BNP Paribas, the initial optimism should not be overplayed.

“While essentially this takes Egypt back to square one and delays any chance of economic progress and an IMF deal even further, we think that ultimately it creates a window of opportunity for a more stable government to be put in place,” she said.

This window of opportunity brought about by the protests that saw Mr Morsi removed from office has, at least in part, been created by the Egypt’s dire economic performance over the past two years.