Stocks Reopen in Egypt, ETFs Bracing For Pain (EGPT, AFK)

Investing

Published: March 23, 2011 7:44 am

Last Updated: April 28, 2020 5:34 am

Market Vectors Egypt Index ETF (NYSE: EGPT) is getting to live up to its reputation as a price discovery mechanism rather than as an ETF. Egypt’s stock exchange reopened today and most shares were suspended in short order because of circuit breakers that had been installed. Many expect the 10% drop seen in most shares to widen out to even lower levels, although no published reports are really signaling a drop of mega-proportions. MarketWatch quoted a local firm calling for 20% to 30% in price drops.

Another ETF is the Market Vectors Africa Index ETF (NYSE: AFK) and it has more than 20% weighting in Egypt. At a close of $32.27 on Tuesday, the 52-week range is $26.60 to $36.45.

The EGX 30 Index has been closed since the end of January and shares fell nearly 10% before trade was suspended on the Egyptian Exchange.

Market Vectors Egypt Index ETF (NYSE: EGPT) is indicated down around $15.85 after having closed at $16.65 and its has a 52-week range of $15.90 to $22.42.

It will probably be next week before these ETFs normalize against benchmark index readings and against their components.

JON C. OGG

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