Investors to move into Egyptian equities, Kitchen says

Egypt is going to move away from the carry trade and increasingly into equities, EFG Hermes Head of Macro Strategy Simon Kitchen told Bloomberg TV. As interest rates continue to fall through the year there will be a shift into equities and the firm likes the “consumer story … consumers were battered last year by high inflation, this year is going to be a bit of a year of recovery,” Kitchen says. FDI is generally picking up, he added, and decent private sector flows are expected, broadening beyond oil and gas. The money coming in might take a little while to have an impact on the economy, but right now “what we’re looking for is the base effect recovery from a difficult 2017,” Kitchen says (watch, runtime 03:03).