Middle East Markets Monitor (Sep.)

The combination of an improvement in political conditions and rising hopes of an IMF deal has boosted bond and equity markets in Egypt. But at the same time, the return of foreign investors will increase the exposure of the country’s markets to fluctuations in the global risk appetite. While we think that the rally in Egyptian bonds and equities still has further to run, the double-digit growth in asset values seen over the past couple of months is difficult to sustain.