MSCI will give Egyptian securities listed in its benchmarks “special treatment” in the wake of investor concerns over Egypt’s limited FX liquidity, Reutersreports, citing a note from the global index provider on Monday. MSCI said it would not “implement any changes as part of upcoming index reviews for any securities classified in Egypt.” The company will announce which stocks it is adding and removing from its indices in its quarterly review after US markets close tomorrow.

El Dokany weighs in: “We see this [decision] as part of the wider impact on the Egyptian economy … The Egyptian stock market is an inseparable part of the Egyptian economy,” EGX boss Ramy El Dokany told Asharq Business (watch, runtime: 1:44). “We are in contact with [MSCI] to see how much their decision will affect Egyptian stocks.”

Egypt in MSCI indices: Egyptian companies are part of MSCI Emerging Markets Index and MSCI’s flagship global equity index MSCI ACWI Index. Over the past year Ezz Steel, Heliopolis Housing, and E-Finance have been added to MSCI’s various indices, which also include EFG Hermes and Fawry.

EGP stability will help draw in foreign investors: “Foreign investors love the Egyptian market but the lack of stability in the exchange rate may be the reason for their delayed investments …The exchange rate stabilizing would be the main motivation for investment,” El Dokany said, voicing confidence in the country’s decision makers to help stabilize the EGP.

MEANWHILE- The EGX may be changing around its lineup of indexes- “We are looking into restructuring a number of the older indices part of the stock market and maybe at some point terminate one of them,” he told CNBC Arabia (watch, runtime: 11:32). He said in March that the bourse has conducted surveys to see which of its indices are among the least used.

Shariah-compliant index pushed back: A Shariah-compliant index is still in the works to hopefully launch before the end of the year, he said. The EGX boss previously suggested that the index could launch this summer.

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