The exchange-traded fund that aims to track the Egyptian stock market is on fire again today.
The one year old Market Vectors Egypt Index ETF is normally thinly traded—with less than 100,000 shares trading hands each day. Today it has seen volume near 700,000. It may exceed Friday’s record volume of 1.2 million shares.
Because the fund suspended the creation of new shares, it now trades like a closed-end fund. And it seems that speculators are making bullish bets on Egypt, since the fund is trading well-above its net asset value.
What’s crazy about all this is that the Egyptian stock exchange hasn’t been open for over a week. The Egyptian banks were downgraded by Moody’s this morning. But the shares of EGPT are about flat for the day, after trading down most of the morning.
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