CAIRO: The Egyptian Exchange (EGX) went up collectively during November and market capitalization gained around 17.8 billion EGP, according to the EGX monthly report issued Monday.
During the course of the month, the benchmark index EGX30 rose from 9,115 points to 9,307 points, marking a 2.1 percent increase. The index, however, failed yet to reach its former peak during September.
The small and mid-cap index EGX70 also jumped 5 percent to hit 640.6 points, compared to 609.9 points at the end of October.The broader index EGX100 also added 3.7 percent to end the month at 1,151 points, compared with 1,109 points at October-end.
Market capitalization gained more than 17.8 billion EGP ($3.18 billion,) to reach a total of 522 billion EGP, compared with 504.2 billion EGP at the end of October.
Dr. Ghada Ibrahim, financial analyst at Capital Securities Brokerage, told The Cairo Post that Egypt is an emerging market that is affected by the movement of the global and Arab market, as well as oil prices.
“All these factors affect the cash liquidity flow into the capital market in general as some oil and energy stocks may lose momentum due to the global price dip,” Ibrahim said. On a Sunday meeting OPEC decided not to cut oil output, and Gulf stock markets plunged.
“The EGX depends on liquidity flow and rotation, reflecting its stability and potentials,” she added.
Ibrahim further explained that until Egypt’s foreign reserves increase after initiating new investment and infrastructure projects while receiving new foreign direct investment, the stock market will likely witness price fluctuation that short-term traders may exploit to take immediate profits.
Last week, an International Monetary Fund (IMF) mission concluded a visit to Cairo for the 2014 Article IV consultation discussions.
Head the IMF mission Chris Jarvis stated that “Egypt’s economy has begun to recover after four years of slow activity. Equally important, there is growing national consensus on the need for economic reform.”