Egypt numbers are hair-raising for investors. Since the beginning of the year its benchmark index has risen nearly 50 per cent, but those invested in Egypt stocks witnessed falls in the same index of 50 per cent in 2011. Investors must now assess whether a healthy recovery is underway or another crash is coming, as a report in Monday’s FTfm explains.
Even those with a long term view looking at Egypt’s fundamentals do not have an easy choice. Ahmed Heikal, chairman of Citadel Capital, an Egyptian private equity group, said in June last year: ”If we get things right, we could be Turkey in 10 years. If we get them wrong we could be Pakistan in 18 months.”
Erring on the side of caution, JP Morgan Asset Management pulled out of Egypt altogether last year and is not being tempted back in by the recent rally.
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