"EGPT" Ranked First Among US-Listed ETF in Month

By: Yassmine ElSayed

CAIRO, Feb. 21 (SEE) - Egyptian ETF "US-listed" ranked as the best country ETF for its monthly performance in US stock exchange, a move widely seen as triggered by the Egyptian central bank’s recent decision to cut rates.  

The VanEck Vectors Egypt Index ETF "EGPT", listed in New York stock market, surged 13.4% on monthly basis, rising from $28 to $33.70. It also surged 20.5% year-to-date, preceding the Egyptian exchange’s main benchmark index which gained 16.6% in the same period.

According to Reuters, Egyptian stocks and country-specific ETF are among the better performers as the emerging market rebounds, supported by Egyptian central bank decision to cut rates to support growth.

The Egyptian pound and reducing inflation contributed in inspiring optimism among domestic and enticing investors, who have increased their holdings in Egyptian assets, Reuters reported.

“There is no financial reason pushing the market higher, but interest rate cuts helped stocks and the market rally recent days,” Ahmed Hesham, vice president of equity and quantitative strategy at Beltone Financial told Reuters.

Central Bank Governor Tarek Amer told Bloomberg recently that Egyptian pound currency would experience greater volatility after the bank ended a policy that guaranteed foreign investors could repatriate dollars when they sell Egyptian securities. Investors will have to deal with the process through the interbank market.

The pound appreciated 2% over the past week to EGP 17.68 against the U.S. dollar.

“There is a state of recovery in emerging-market indicators, including Egypt, alongside the monetary policy variables in the country,” Mohammed El Saiid, head of technical analysis at HC Securities & Investment, told Reuters. “All of that helped lift the market.”

“EGPT” ETF tracks the performance of Egyption stocks by 91.67% of its investment portfolio, while the rest are from UK, Canada. ‘EGPT’s top holding is, respectively, Commercial International Bank (Egypt) SAE Sponsored GDR RegS 9,37% , Egypt Kuwait Holding Co. SAE 9,13% , Talaat Moustafa Group Holding 6% , Global Telecom Holding S.A.E. 5.76% , Eastern Company 5,75% , El Sewedy Electric Company 5,74%, Centamin plc 5,49%, Telecom Egypt 4,38%, Juhayna Food Industries 4.22%, Medinet Nasr Housing 4% ,Abou Kir Fertilizers & Chemical Industries Co. 3,71% , Pioneers Holding Co. 3% , Palm Hills Development Co. 3%, Ibnsina Pharma 2,93%, Ezz Steel 2,67%, Egyptian Financial Group-Hermes Holding Co. 2,63% , Six of October Development & Investment (SODIC) 2,61%, Egyptian Financial Group-Hermes Holding Co. Sponsored GDR RegS 2,54%, Sidi Kerir Petrochemicals 2,5% , Qalaa Holdings S.A.E 2,47%, Heliopolis Housing 2,25%, TransGlobe Energy Corporation 2%, Alexandria Mineral Oils Co. 2%, Oriental Weavers Carpet 1,92% , Emaar Misr for Development SAE 1,75%, Orascom Investment Holding SAE 1,43% , Integrated Diagnostics Holdings Plc 0,42% , U.S. Dollar 0,14%