This is the first time the Egyptian stock market was closed since the January 2011 revolt against Mubarak’s rule when trading was suspended for almost two months. [Egypt ETF Trades At Premium Over NAV]
Meanwhile, the EGPT ETF was trading at a 7.51% discount Thursday, according to Morningstar data. While the the Egypt’s market may be suspended, investors can still trade the U.S.-listed EGPT ETF to price where they believe Egyptian stocks should be. Authorized participants are currently unable to trade the underlying market to capitalize on the arbitrage opportunity.
The current discount also suggests ETF investors believe that Egyptian stocks’ last closing price is overvalued and slated to fall once markets open.
Market Vectors Egypt ETF
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Max Chen contributed to this article.