Emerging markets investor Mark Mobius is poised to buy Egyptian shares should the stock market continue falling on the back of political instability in the region.
Today marks the seventh day of protests, with tens of thousands demonstrators gathering in Cairo while president Hosni Mubarak clings on to power. Yesterday leading Egyptian opposition figure Mohamed ElBaradei told protestors that ‘Change is coming’, according to the BBC.
Regime change could provide a ‘tremendous boost not only to Egypt but to the Middle East’, said Mobius in an interview with Citywire's Chris Marshall.
‘We’re looking to buy in at the right price’, the veteran investor said. The stock market would need to drop another 10-15%, said Mobius. Egypt's stock market was closed on Sunday and Monday after the benchmark EGX 30 stock index plunged nearly 11% Thursday.
He pointed to the potential of Egypt’s young well-educated population, which are leading the uprising. ‘Let these guys loose and the place could go wild. I’m optimistic,’ Mobius said.
Mobius, who recently revealed he is considering launching an emerging markets-focused hedge fund, already has investments in banks, telecoms and construction companies in Egypt: ‘these are the ones we like,’ he said.