* Egyptian stocks rocket 37 pct in 2012, tops in the world
* Templeton’s Mobius see short-term turmoil, then gains
* T. Rowe’s Bell mainly avoiding due to currency weakness
* Value investor Seruma is buying, saw ‘irrational’ discounts
By Ross Kerber
BOSTON, March 27 (Reuters) – Egypt’s stock market has jumped 37 percent so
far in 2012, the largest gain of any country, but top U.S. fund managers focused
on the region remain wary of further political turmoil and currency weakness in
the most populous Arab nation.
The country’s main stock index lost nearly half its value last year
as massive public protests drove longtime president Hosni Mubarak from power in
February 2011 and military leaders assumed control. This year’s stock market
bounce came as investors snapped up shares of companies like Orascom
Construction Industries SAE and telecom carrier Egyptian Co for Mobile
Services SAE.
But in recent interviews, several fund managers who most closely follow the
nation said significant risks from Egypt’s political and economic situation
remained. Egypt’s fragmented political parties are struggling to reach consensus
on a new constitution and tensions are rising with a president election just two
months away.
A major risk is the country’s currency, the Egyptian pound, which several
fund managers said could fall in value despite heavy government spending to prop
it up.
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