02-11-2011, 01:30 PM
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#202 (permalink)
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Junkie
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Quote:
Originally Posted by filtherton
Ever considered that perhaps you're mistaken about what they're fighting for? Or maybe you might not be in the best position to judge their strategy?
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Yes.
---------- Post added at 09:30 PM ---------- Previous post was at 09:25 PM ----------
Quote:
Originally Posted by powerclown
Come on Egypt!!
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There is the potential for a major out-flow of financial capital from Egypt. Egypt is going to need substantial support from capital markets and national governments. In addition I wonder if those talking the most smack are prepared to put their own money where their mouths are and invest in Egypt. One fast way to do it is with an Egyptian ETF like this one.
Quote:
An exchange-traded fund designed to track Egypt is open for business, and has been drawing in money, even though the Egyptian stock market remains closed amid antigovernment protests.
Market Vectors Egypt Index ETF (trading symbol: EGPT) has rebounded about 10% this week after civil unrest triggered a roughly 20% decline.
The ETF was trading after a brief halt Monday morning. The fund has temporarily suspended the creation of new shares, although shares continue to trade hands on the secondary market.
Because Market Vectors Egypt Index ETF is operating similar to a closed-end fund, it can experience premiums and discounts to net asset value, or NAV.
Ed Lopez, marketing director at manager Van Eck Global, said the ETF was trading at a premium of about 10% on Tuesday morning. In other words, traders were betting on a rebound in Egyptian stocks when the nation's market reopens.
Yet if selling pressure materializes, the Egypt ETF could trade at a discount to NAV.
Market Vectors Egypt Index ETF has seen assets roughly double to about $24 million since last week, he said.
Launched in February 2010, the fund is thinly traded, with daily trading volume rarely exceeding 100,000 shares. Friday, volume exploded to a record 1.2 million shares, as worries over protests in Egypt shook global markets.
The ETF tracks an index intended to give investors a means of tracking the overall performance of companies that are domiciled and primarily listed in Egypt, or that generate at least 50% of revenue in Egypt, according to 4asset-management, the index provider.
Van Eck's Mr. Lopez said some of the ETF's components are traded in other markets, such as London and Canada.
Asked how the ETF is determining NAV while the Egyptian stock market is closed, he said Bank of New York Mellon Corp., the fund's custodian, is responsible for pricing. An ETF official at the bank couldn't be reached to comment. Mr. Lopez said that when determining fair value, factors such as futures prices and other markets may be considered
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Egypt ETF Lures Investors - WSJ.com
__________________
"Democracy is two wolves and a sheep voting on lunch."
"It is useless for the sheep to pass resolutions on vegetarianism while the wolf is of a different opinion."
"If you live among wolves you have to act like one."
"A lady screams at the mouse but smiles at the wolf. A gentleman is a wolf who sends flowers."
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