Egypt’s benchmark stock index, the worst performer in emerging markets last year, is leading gains in 2012 after the nation formed its first parliament since the ouster of Hosni Mubarak and started talks with the International Monetary Fund.
The EGX 30 Index jumped 28 percent in January, the best monthly gain in seven years and the biggest advance among 72 world stock gauges tracked by Bloomberg. Orascom Telecom Holding SAE (ORTE), the Cairo-based mobile-phone company that split into two units last month, led the rally with a 110 percent surge.
Egypt’s parliament convened on Jan. 23 for the first time since the end of Mubarak’s 30-year rule as the government negotiated a $3.2 billion International Monetary Fund loan. While stock analysts tracked by Bloomberg predict the EGX 30 will rise another 19 percent in the next year, ING Investment Management says shares may resume declines as policy makers haven’t produced plans to revive the economy. The EGX 30 is valued at 16 times earnings, a 38 percent premium over the MSCI Emerging Markets Index. (MXEF)
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