Payments giant Fawry could make it onto the FTSE and MSCI emerging markets indices this year, Arqaam Capital said in a research note on Tuesday, a few days after the company was added to the EGX30.

Inclusion in FTSE is a “straightforward call” and is expected on 21 September: Fawry’s freefloat market cap (number of shares in freefloat multiplied by price) currently stands at some USD 631 mn, far exceeding the USD 487 mn required for entry. It also meets the liquidity requirements, which ensures inclusion in the FTSE EM All Cap Index’s next rebalancing on 21 September — with a weight of 0.0082%.

MSCI isn’t as clear cut: Fawry could replace Elsewedy Electric on the MSCI EM Standard index — which is currently tracked as one of the top three Egyptian stocks (alongside CIB and Eastern Company) — when the index is rebalanced on 21 May if Elsewedy’s shares continue to underperform. Fawry would need to outperform Elsewedy only by a small margin as Fawry’s shareholders include foreign institutions, which means its freefloat cap is adjusted by a foreign ownership factor, Arqaam said.