MSCI to adopt special treatment for Egypt in Equity Indexes
Updated 5/9/2023 7:41:00 AM
Arab Finance: The New York-based MSCI Inc. will adopt special treatment for Egypt in the MSCI Equity Indexes to potentially minimize the changes in related indexes and eliminate index replication problems, according to a statement on May 8th.
This move comes after receiving feedback from market players on repatriation challenges in the Egyptian equity market as a result of limited foreign exchange (FX) liquidity as well as the resurgence of the FX queue.
Until further notice, MSCI will not implement any adjustments in the framework of the upcoming index review work for any securities in Egypt that are categorized for listing on the MSCI Egypt indices and related composite, derivative and special indices.
“Such changes include migrations between size-segments, additions of newly eligible securities, including sizable IPOs, potential updates in Foreign Inclusion Factor (FIF), Number of Shares and GICS classification, as well as constraint factor changes,” MSCI said.
“MSCI welcomes feedback from market participants on the accessibility of Egypt and will continue to closely monitor this market and issue further communications as warranted,” MSCI added.
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