TMG moves up to FTSE Russel GEIS’ mid-cap segment

Talaat Moustafa Group (TMG) advanced from the small-cap to the mid-cap segment of the FTSE Russell Global Equity Index Series (GEIS), as part of the semi-annual review for the Middle East and Africa region, the real estate player said in an EGX disclosure (pdf). The upgrade comes after TMG’s market capitalization surpassed the mid-cap minimum threshold of around USD 2.7 bn as of 31 December.

Why this matters: The reclassification of TMG to the mid-cap segment signals Egyptian caps are recovering after a recent currency devaluation squeezed margins on real estate players’ existing contracts. Large Egyptian real estate companies such as TMG are now finally heavy enough to compete for regional mid-cap indexes once again, placing them within reach of a significantly broader base of institutional investors that typically overlook small-cap stocks.