RenCap says Egypt is its top pick

Egyptian assets are Renaissance Capital’s top pick: Egypt is now reaping the rewards of the EGP devaluation, according to Rencap’s Global Chief Economist Charles Robertson. He says the weaker EGP “should spur exports and encourage foreign direct investment over the next few years.” Robertson told Bloomberg “Egypt is one of the most interesting stories in emerging markets right now for any investor anywhere … There is an investment opportunity in Egypt now that’s as good as it was in South Africa when the rand was 16 to the [USD] a year ago.” Speaking on the sidelines of Rencap’s Egypt conference, Robertson said even with the risks in terms of regime change, the cheap EGP makes it already priced-in and if there is a change, what is more likely is that Egypt “becomes a little bit more like a Turkey or a Russia or a Malaysia, where Parliamentary elections do happen, more parties can compete in them, but it’s not full democracy.”