Morgan Stanley analyst Matthew Nguyen is urging investors to buy Egyptian equities, assigning an Overweight rating. His bullish call hinges on the tentative reopening of the Suez Canal, a vital global shipping artery. The bank sees this as a potential catalyst for a major re-rating of Egyptian stocks in 2026.

Nguyen points to concrete steps from shipping giants. Maersk announced its first structural return to the trans-Suez route, while competitor CMA CGM completed trial sailings last December. Morgan Stanley’s transportation team expects full traffic to resume by the second half of 2026, boosting Egypt’s crucial canal revenues.

A revived canal would strengthen Egypt’s external balances, supporting a more favorable macro backdrop. This comes as foreign investor flows into Egyptian stocks have already hit a two-year high. With undemanding valuations and a macro turnaround underway, Morgan Stanley ranks Egypt as the top pick on its equity country scorecard.