“Once the parliamentary elections happened and they were peaceful and well organised and transparent, investors thought Egypt was changing,” Angus Blair, founder of the Signet Institute, said in the FT article. “Even though there have been some hiccups, the market rise has been driven by the general long-term economic story and the occasional good news on the political sphere.”
Nevertheless, some have pointed out that the country’s currency reserves are down, bond interest rates are higher, economic growth is flat and foreign investment demand is lower.
“This rally from the beginning of the year until today was not accompanied by any changes in the fundamentals,” Wael Ziad, head of research at EFG-Hermes, said in the article. “We need to see earnings improvement before we get very excited. We’re not picking that up at the moment.”
Market Vectors Egypt Index ETF
For more information on Egypt, visit our Egypt category.
Max Chen contributed to this article.