Economists and financial experts predict the Egyptian Stock Exchange will perform better in the year 2014, possibly making gains of more than 40 percent by the end of the year, citing an expectment improvement in stability and security.
The major political events that will restore stability, they say, include the referendum of the draft constitution, parliamentary and presidential elections.
Adel Mostafa, director of investment at Egyptians Abroad Investment and Development Co., said that the Egyptian stock indexes are likely to gain more than 40 percent during the year 2014, so that the main index exceeds the level of 10,000 points .
The expected gains are also supported by the trend in the government to reconcile with investors and businessmen, which will pave the way for the return of many of them, who have fled the country after the January 2011 revolution, for fear of prosecution .
Markets expert Omar Abdel Fattah said that despite the hot political events in early 2014, all of these things are expected to dramatically calm down, once the constitutional referendum is held mid-January.
Most expectations say that the constitution is going to be approved with the majority of votes, according to Abdel Fattah, something which will lead to stability on the political level, and will turn down the pro-Mohamed Morsy voices calling for his return, since a constitution would bestow legitimacy to the government.
In Abdel Fattah's opinion, the return of Mubarak era officials to the political arena shows the return of the businessmen of the strong economic era before the January 2011 revolution, which is a vital thing, because they have the ability to to lead economy for owning major companies in various economic sectors .
Marwan Sharab, fund management director at Emirati Vision Investment Services Co. (SAOC), said that the stock prices of companies the Egyptian Stock Exchange is the most attractive in the region but the political and economic situation in the country continues to be a significant impediment to making any decision to invest in them.
Sharab called on the Egyptian government to develop more effective long-term economic plans to achieve economic recovery, to reassure investors before entering the Egyptian market .
Edited translation from Al-Masry Al-Youm
