Four of 11 MENA fund managers said to increase Egypt exposure
Over a quarter of MENA-based fund managers are planning to increase their allocations to Egypt over the next three months, according to a Reuters poll. One of those surveyed singled out the country’s growth prospects as the region’s best. Inflation and interest rates, however, “need to subside,” senior portfolio manager at Dubai’s Al Mal Capital Vrajesh Bhandari said. The EGX, up 8.2% year-to-date, outperformed other markets in the region including Dubai, Abu Dhabi, and Qatar.
Kuwait is the regional darling, with its market gaining 20.7% YTD and index compiler MSCI saying it could upgrade Kuwaiti equities to emerging market status in 2020. Six of the 11 managers polled by the newswire said they would raise their investments in the GCC country over the next three years. Qatari equities, meanwhile, were one of the region’s worst performers. As for the rest of the region, the majority of managers said they will keep their investment in the UAE, Saudi, and Turkey unchanged.