Egyptian securities are back in the MSCI’s good books: Global index provider MSCI has decided to remove all special treatment measures on Egyptian securities listed in its indices in the May 2024 index review, according to Al Borsa. Progress made on foreign currency liquidity and the ability of foreign investors in the country to transfer funds abroad were reportedly the reasons behind MSCI’s decision.

Remember: MSCI avoided making changes to Egyptian securities in its May 2023 index review, opting to give them special treatment in the wake of investor concerns over Egypt’s limited FX liquidity.

MSCI also has some other changes for EGX-listed companies in the pipeline:

  • Talaat Moustafa Group (TMG), which has seen a 143.3% increase in its share price since the beginning of the year, will move from the small-cap index to the flagship Egypt index.
  • EFG Holding will replace TMG in the small-cap index, as only three constituents make up the MSCI Egypt Index.
  • CIB’s foreign inclusion factors will be updated to reflect ADQ Holding’s acquisition ofa stake in the bank back in 2022, which now stands at 18.4% through its subsidiary Alpha Oryx.

Changes will take effect at the close of May 31, according to a statement (pdf) from the index provider.

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