You know markets are off to a good start this year, but the clear winner of the year so far: The Egypt market.
The Egyptian EGX 30 Price Return Index is up over 4% today, and is now up about 42% year to date. Of course, this market got utterly smoked last year following the collapse of the Mubarak government.
As an aside, we’d like to note that today’s huge gain coincides with a huge gain for another one of 2011’s gigantic losers: The Athens market, which is up about 5% today.
And if you look at a 6-month chart — which doesn’t include today’s huge action in both — you can see the two move similarly.
(Green is Cairo, orange is Athens)
We can’t think of any fundamental reason the two should be so closely linked, except as we keep pointing out all year: In a broad sense, everything remains correlated, and money flows going to last year’s “trash” are effecting both markets similarly, it would seem.