Egyptian stocks surge on Morsi victory Egyptian stocks surged on the first day of trading after Mohamed Morsi, an Islamist, was declared winner of the country's first ever free presidential election, ending a week of uncertainty since the poll was held. On Monday the Muslim Brotherhood's candidate arrived for the first time at the presidential office, where Hosni Mubarak, who was ousted in a popular uprising last year, used to work. IN Middle Eastern Finance The benchmark EGX 30 index was up 6.07 per cent within an hour of trading opened reflecting relief as the prospect of violence over a disputed result receded. Mr Morsi's supporters had declared him the winner shortly after the polls closed last Sunday but the long wait for the official announcement sparked suspicion of fraud and fears of impending violence. Egyptian markets had tumbled on the uncertainty and expectations of unrest as tens of thousands of Brotherhood supporters massed in Tahrir Square at the weekend to press the ruling military council to rescind a constitutional declaration issued last week which restricts the powers of the president and entrenches the authority of the military. In a note on Monday, Emad Mostaque, strategist at Religare Capital Markets said he was "rather confident in Egypt despite the hurdles it still needs to jump" and urged investors to "buy Egypt." He said: "In terms of market impact the president has legislative authority to stabilise the economy through foreign aid and while they may insist that this takes Islamic form (not very difficult to do through sharia swaps or murabaha), the deficit should be plugged and aid should come from the G20/IMF/GCC helping the Egyptian pound as there will not be much violence on the street/chaos." The spectre of a devaluation still hangs over Egypt, unless progress is made quickly in securing a $3.2bn loan from the International Monetary Fund. In the year and a half since the popular uprising which forced Mr Mubarak from office, the country has lost more than two-thirds of its foreign reserves as the central bank battled to defend the pound. Reserves stood at $15.5bn at the end of May, only slightly above the critical three months of import cover. Disagreements between the Brotherhood and the military had held up the IMF loan which is conditional on Egypt's commitment to economic reforms and the existence of broad political support for it. The election of an Islamist president empowered to appoint a government that can implement a programme of reforms should make it easier to secure the funding. In the coming days, the new president is due to select members of a coalition government which, Mr Morsi has promised, will be headed by a "national figure" prime minister who does not come from the Brotherhood. The cabinet headed by Kamal Ganzouri, the prime minister appointed at the end of last year by the ruling military council, is meeting on Monday and expected to tender its resignation. It will remain in place, though, until Mr Morsi has chosen his team.