Commenting on MSCI’s decision to drop plans to downgrade Egypt from Emerging Market Index, the Egyptian Exchange Chairman Mohamed Omran said it will raise the confidence levels among all investors, especially foreign investors. This would in return reflect on the volume and value of trades in the Egyptian stock market during the next period.
Omran added, in a press release by the stock exchange on Wednesday, that MSCI decision came after intense negotiation with the institution to show the promising investment climate in Egypt as well as the absence of obstacles facing investors regardless of their nationality.
In addition, Omran said that the collaboration with the Central Bank of Egypt and its commitment to cover all the needs of foreign investors which affirmed the confidence of investors in the climate of investment in Egypt.
Omran expected the decision to have a positive effect on the volume of foreign investments in the Egyptian market.
Early Wednesday, Morgan Stanley Capital International – MSCI inc., a leading provider of indexes and other investment decision support tools worldwide, has announced that it is no longer considering launching a public consultation on a potential exclusion of the MSCI Egypt Index from the MSCI Emerging Markets Index according to Reuters.
MSCI added, in its annual market classification review for 2014, that it was due to the substantial increase in Egyptian foreign currency reserves.