MSCI: No Decision Currently Taken To Downgrade Egypt, Yet ‘Closely’ Monitored

Talks are underway between the Egyptian Exchange (EGX) management and leading equity index provider MSCI over the possible review of Egypt position on MSCI Emerging Markets Index.

Sebastien Lieblich, CEO Research, MSCI, said that the situation in Egypt is being monitored closely. He denied the presence currently of any decision taken to place Egypt on watch list or any proposal to downgrade Egypt within MSCI indices.

These confirmation came during a meeting held with Mohamed Omran, Chairman of The Egyptian Exchange (EGX).

Lieblich also indicated that MSCI is not currently thinking of removing EGX from MSCI Emerging Market Index.

It is worth noting that Chairman Dr. Omran is currently paying a visit to the United States to meet with a number of representatives of global financial institutions seeking to encourage them to reconsider the volumes of their investments in the Egyptian market.

During his visit to the United States, the Egyptian stock market Chief has met with representatives of around 30 global financial institutions.

Last week, Dr. Omran reviewed with the representatives the current situation of the Egyptian market alongside a number of pressing topics, notably the recently-imposed stamp tax on the EGX’s daily selling and buying transactions as well as the potential reclassification of the MSCI Egypt Index to frontier markets.

He has referred to the considerable efforts currently exerted by the non-profit capital market societies in an attempt to cancel the stamp tax on the EGX’s dealings.

The bourse chief expressed his optimism about witnessing a breakthrough in the EGX stamp tax file, noting that the Egyptian authorities have shown remarkable resilience in backing down on bank provisions tax.

During his meeting with the global financial institutions representatives, Dr. Omran has stressed the privileges of making investments in Egypt, one of the most populous country in the Middle East, which enjoys promising investment opportunities with as little as possible of political stability that will gradually drive the growth rates to revive.

In an interview televised by Bloomberg Television on Wednesday evening, the bourse chief has marked that the concerns of MSCI as regards problems facing foreign investors due to foreign currency crisis are somewhat exaggerated due to the imprecise data on which MSCI based its opinion.