In its MENA Strategy report, EFG-Hermes said that that TMG Holding, SIDPEC and Oriental Weavers are on its MENA Top 20 List.
The report issuer said that foreigners bought 20% of EUR513 million in one-year T-bills sold by Egypt on 28 August, and are also reportedly buying short-tenor EGP T-bills in small volumes.
According to the investment group, most foreigners have stayed away from T-bill auctions since early 2011.
Hermes added that the resulting improvement in liquidity may lead to a marginal reduction in discount rates for Egyptian equities, extending the current rally in the stock market.
“We maintain our Neutral weighting on Egyptian equities until this trend is confirmed, believing that we will not see a long-term convergence trade in the Egyptian market until real interest rates fall significantly,” the report issuer said.
Mubasher
