Investors dumping Kenyan stocks for Egyptian ones

Africa’s stock investors are turning to Egypt and away from Kenya, Adelaide Changole writes for Bloomberg. The EGX30 is at its highest level relative to Kenya’s benchmark index since 2008 following the flotation of the EGP. Rencap chief economist Charles Robertson says the Kenyan government’s decision to impose a cap on lending rates along with the rising oil prices and looming elections there are making Egypt a more attractive option. Also bullish on Egyptian equities is Ami Kemppainen, who manages a fund at Terra Nova Capital Advisors’ Evli Emerging Frontier. Kemppainen says his fund is long on El Sewedy Electric and says Egypt “has the potential to rise and grow.” His favorite markets for 2017 also include Vietnam, Pakistan, and Malaysia. Separately, Investment Frontier published a pretty basic beginners’ guide on investing in Egypt, saying it “may finally be in a position to make sense as a destination for foreign investors.”