Monday 12 March 2012

Mobius Rules Out Chavez-Style Policies in Egypt as Stocks Soar - Bloomberg

Islamist parties that have taken control of Egypt’s parliament are unlikely to follow in the footsteps of leaders like Venezuelan President Hugo Chavez by seizing private assets, Mark Mobius said.
Concerns, particularly in the U.S., that an Islamist-led government in Egypt may alienate foreign investors are unwarranted, said Mobius, who oversees more than $50 billion in emerging-markets assets as executive chairman of Templeton Emerging Markets Group. Egypt’s benchmark stock index has surged 46 percent and is the world’s best-performing measure this year, data compiled by Bloomberg show.
“What we have to be careful about is a growth of extreme nationalism,” he said in an interview on March 8 in Dubai. “As soon as there is a sign of that then the game is over like what happened in Venezuela. We were completely out of Venezuela as soon as Chavez came in because we knew that assets will be confiscated. But I don’t see that happening in Egypt.”

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