CAIRO: The Egyptian Exchange (EGX) surged collectively during July amid upbeat investor sentiment following President Abdel Fattah al-Sisi’s remarks on launching mega projects after Eid al-Fitr to bolster Egypt’s faltering economy.
“Sisi’s announcement about an upcoming ‘pleasant surprise’ carried some positive indicators for investors, and supported the market’s bullish performance,” capital market expert Abdel Rahman Taha told The Cairo Post.
This positive performance comes after the market had featured the negative effect of the Cabinet’s decision to mull a 10 percent tax on stock market profits and dividends, and the Central Bank of Egypt’s (CBE) decision to raise the interest rate.
During the course of the month, the benchmark index EGX30 hiked form 8,162 points to 8,826 points, marking an increase of 8.1 percent, the highest level since August 2008. The small and mid-cap index EGX70 also jumped 6.27 percent to hit 628 points, compared to 591 points by the end of June.
The broader index EGX100 also added 7.2 percent to end at 1,109 points, compared with 1,034 points last month. Market capitalization gained more than 23.4 billion EGP ($3.27 billion), to reach a total of 501 billion EGP, compared with 477.6 billion EGP at the end of June.
Total trade value amounted to 17.3 billion EGP, with 2,535 billion securities traded in over 338,000 transactions, down from a total of 41.9 billion EGP and 5.639 billion securities traded in 541,000 transactions the month prior.
“Egypt’s stock market is expected to witness a great leap and the benchmark index could penetrate 9,200 points amid high liquidity and trade volume in conjunction with the upcoming donor conference aimed at supporting Egypt’s economy,” said Ahmed el-Rawy, head of technical analysis at Arab Finance.
“The housing and banking sectors are expected to lead the market rally in the coming period,” Rawy told the Cairo Post Saturday. He added that announcing the companies that will implement the Suez Canal Development project will boost the shipment sector as well.