Egypt’s Muslim Brotherhood and the country’s old guard stepped closer towards confrontation yesterday following weekend presidential elections and a flurry of manoeuvres by the armed forces that appeared to expand the military’s hold over political life.

Although official results are not due to be released until Thursday, the Brotherhood’s Mohamed Morsi yesterday claimed victory in the presidential poll, with 52 per cent of the vote. The announcement triggered a heated exchange with rival Ahmed Shafiq, former strongman Hosni Mubarak’s last prime minister, whose supporters accused the Brotherhood of trying to “steal” the election.

The resulting uncertainty alarmed investors and caused the Egypt Stock Exchange’s benchmark EGX-30 index to close down 3.42 per cent.