Egypt's benchmark stock exchange rose 1.53 percent on Tuesday as investors reacted to a barrage of political news, led by the country's military council accepting the resignation of its top general, Field Marshal Abdel Fatah El-Sisi.
The council said in a recorded audio statement on Monday it had no choice but to "respect the wishes of the people to nominate him for the presidency". El-Sisi, who oversaw the ousting of former president Mohamed Mursi last summer after unprecedented street protests, is expected to announce his presidential campaign formally in the coming days.
Earlier this week, it emerged that Egypt will hold presidential elections before a parliamentary vote, most likely in March or April.
However, events on Tuesday morning underscored the pervasive political tensions in the country. Mohamed Said, a general in the police force and senior aide to the minister of interior, was assassinated in a drive-by shooting in central Cairo.
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The incident may turn out to be a continuation of an insurgency by a Sinai-based fundamentalist Islamist group targeting the nation's security apparatus. Known as Ansar Bait Al-Maqdis, the group also claimed responsibility for a string of explosions in the capital last Friday and previous attacks on security officials.