Investor attention was largely focused on Greek elections and on the eurozone over the weekend. But perhaps more of it should have been focused on the first democratic elections this weekend in Egypt, which have caused the value of the ETF targeting the country to plunge, according to an article on Benzinga.
Canvassing each country in the exchange-traded fund market are the Global X FTSE Greece 20 ETF (NYSEArca: GREK) on the one hand, and the Market Vectors Egypt ETF (NYSEArca: EGPT) on the other. While GREK has been plenty volatile in recent weeks, the article said the Egypt ETF has slid 13 percent since May 29. Moreover, the EGPT fund ended Friday’s session under $11 – below its “Arab Spring” low.
The Egypt ETF fell close to 4.8 percent during the two days before news of Egypt’s parliament was dissolved. Add on a 10.4 percent unemployment rate to unstable political situation and the close future of Egypt-tracking ETPs is not looking too bright, according to the article.
The Market Vectors Africa Index ETF (NYSEArca: AFK), the Guggenheim Frontier Markets ETF (NYSEArca: FRN) and the PowerShares MENA Frontier Countries ETF (NasdaqGM: PMNA) are also likely to be affected by Sunday’s results, as they hold large amounts of exposure to Egypt, the article said.
Head over to Benzinga.com to read more.