Dubai:

An exchange-traded fund focused on Egyptian equities had the biggest weekly inflow since 2014 as foreigners increase bets on this year’s second-best-performing stock market.

The VanEck Vectors Egypt Index ETF attracted $11.5 million in the five days ended March 8, more than any other week since September 2014. The assets under management climbed to $52 million (Dh191 million), the highest since August. The US-based fund invests more than 40 per cent of its assets in real estate, chemicals and telecommunications shares trading in Cairo.

The flows show increased appetite for Egyptian shares by foreign investors. The EGX 30 has advanced 15 per cent this year, recovering from a slump of 13 per cent in 2018, as a surprise interest-rate cut last month adds to an improve in sentiment towards assets from emerging markets. The index is the second best performer among major gauges tracked by Bloomberg this year, behind only one in Shanghai.

After the stellar week for the VanEck fund, Egypt ranked first on a list compiled by Bloomberg that tracks ETF flows to different countries globally. The increase was of 20 per cent, when measuring flows versus total assets targeting the country.