CAIRO — Mohammad Mursi, Egypt's first freely elected president whose powers have been curbed by the military, Monday toured his palatial new residence — where ousted leader Hosni Mubarak once lived — and began work to form a coalition government. The Islamist now faces the challenge of meeting sky-high expectations in a nation tired of turmoil while the economy is on the ropes. However, authorities halted trading on the country's stock exchange for half an hour after shares surged on the declaration of Mursi as president. The temporary halt came after the EGX100 index rose more than 5 percent, triggering a “circuit breaker" designed to prevent drastic market fluctuation. Monday's investor optimism also helped the benchmark index EGX30 jump by 6.7 percent. Mursi's campaign pledge to complete the revolution that toppled Mubarak last year but left the pillars of his rule intact will come up against the interests of the generals who have been in charge of the transition to democracy. Shortly before the presidential vote, the newly elected Islamist-led parliament was dissolved by the army based on a court order and the generals issued a decree putting limits on the president's remit, which cuts into Mursi's powers to act, but exposing him to blame for any failures. Further afield, his win has had an immediate impact beyond Egypt's borders, inspiring Islamists who have risen up against autocrats across the Middle East and swept to power in North Africa. Israel worries its peace deal with Egypt, never warm, will cool further. Palestinians in Gaza, however, are delighted. Iran saw his election as an “Islamic awakening". Its Fars news agency published an interview in which Mursi called for restoring severed ties to build strategic “balance". A Mursi aide said he gave the interview 10 days ago. A security official said Mursi and his wife took a tour of their new home, once Mubarak's main residence — a dramatic change of fortunes for a former political prisoner whose group was pursued remorselessly during Mubarak's 30-year rule. An aide said Mursi then went to the Defense Ministry for talks with the head of the military council Field Marshal Hussein Tantawi and the army-appointed Prime Minister Kamal Al-Ganzouri for talks on steps toward forming a new government, a visit rich with symbolism about where real power lies. Mursi aides say he has already reached out to politicians from outside the Brotherhood such as reformist Mohamed ElBaradei, who has yet to publicly respond. One pressing concern will to be to revive the economy. Monday's stock market rally, at least partly fueled by relief that the election passed off without violence, may encourage the new president, but he still has to prove to wary longer-term investors that Egypt is on the road to recovery. — Agencies
