The bank said Maersk’s announcement on January 15 marked its first structural return to the trans-Suez route after months of disruption linked to regional tensions.
Morgan Stanley has reiterated its overweight recommendation on Egyptian equities, citing early signs of a return to regular shipping flows through the Suez Canal following improved stability in the Red Sea.
In a research note, the bank said Maersk’s announcement on January 15 marked its first structural return to the trans-Suez route after months of disruption linked to regional tensions.
The move could encourage other major shipping companies to follow, supporting investor sentiment toward Egyptian assets and paving the way for further re-rating of equities.
Maersk is the world’s second-largest shipping company. Morgan Stanley also noted that, according to the Suez Canal Authority, CMA CGM, the third-largest global shipping group, conducted trial sailings through the canal in December 2025, reinforcing expectations of a broader normalisation in traffic.
The bank’s base case assumes a full resumption of regular containership flows by the second half of 2026, which would translate into higher Suez Canal receipts for Egypt and support an improvement in the country’s external balances.
Morgan Stanley said the normalisation of canal traffic would reinforce Egypt’s ongoing macroeconomic recovery. In its 2026 EEMEA Equities Outlook, the bank recommended going overweight Egypt, citing undemanding valuations amid a macro turnaround.
Foreign inflows into Egyptian equities have begun to pick up month-to-date, reaching their highest levels in two years, the note said. In parallel, Morgan Stanley’s CEMEA macro strategists have re-entered long positions in Egyptian pound Treasury bills on an unhedged basis, supported by lower local yields and a stronger foreign exchange backdrop.
Despite a recent re-rating to around 7.4 times forward earnings, Egyptian equities continue to trade at a significant discount to emerging markets, Morgan Stanley added, noting that Egypt currently ranks first on its equities country scorecard.
