Garcia » Blog Archive » Investment Idea

Investment Idea – EGPT

27 January 2011 211 views No Comment

EGPT is an Egypt ETF – Egypt’s market is down another 6% today and 18% since Tunisia’s protests – This ETF is down 12% since Tunisia and should decline further today if Egypt’s market remains lower into the close – Trading is currently suspended in Egypt which is not a positive sign for the direction of the market – I think this move is overstated – Even if Mubarak falls (or – more likely – crushes the protests), I don’t see the Egyptian market remaining at such depressed levels – The situation is very fluid and I wouldn’t touch any Egyptian related investment until after Friday’s planned afternoon protests – Depending on how these turn out, EGPT may be the stock to scoop in US trading Friday morning (or Monday if you don’t want to hold over the weekend) – There is significant risk involved and no options are offered on the ETF so you have to play the stock.

Two other quick points: Tunisia’s market has been suspended since the 14th and was down 13% leading up to Ben Ali’s overthrow – Until it reopens it’ll be difficult to compare to Egypt – Also, the Sawiris brothers, Ahmed Ezz, and the Mubaraks are closely tied to some of the ETFs top ten holdings (and likely those outside the top ten) which could be quite disruptive if the regime is toppled.

Stay tuned…