By Sujata Rao
LONDON, June 28 (Reuters) – Egyptian stocks topped returns
on emerging equity markets in the first six months of 2012 with
a rise of 30 percent, well above the broader MSCI emerging stock
index, where spectacular first quarter gains crumbled under the
impact of the euro crisis.
MSCI’s dollar-based emerging equity index has
fallen 1 percent in the first six months of 2012, after dropping
more than 20 percent in 2011.
The index rallied 13.6 percent in January-March, its best
first quarter performance since 1992, but surrendered these
gains as Europe’s debt and banking crisis spread and investors
worried about Chinese and U.S. growth.
“It’s been a difficult environment for emerging markets…a
case of risk-on and risk-off,” said Jeff Chowdhry, who helps
manage $4.5 billion in emerging equities at FC Investments.
“In the next six months, the euro crisis will continue to
cast a shadow over the asset class so I don’t expect any
sustained rally unless we get some resolution.”
The index lags MSCI’s world index .MIWD00000PUS the second
year in a row. But it hides sharply diverging performances.
Egypt’s strong rally after Mohamed Mursi became the
country’s first democratically elected president has made it the
best performing emerging equity market, with gains of 32
percent. However, it is yet to entirely recoup its 2011 losses.
Continued…
