EGX soars 10% in January, equities gain $3.5B
The Egyptian Exchange (EGX) - YOUM7 (Archive)

CAIRO: The Egyptian Exchange (EGX) went up collectively during January and market capitalization gained around 26.7 billion EGP ($3.51 billion), according to the EGX monthly report issued by the state-owned MENA news agency.

During the course of the month, the benchmark index EGX30 jumped 10.27 percent to hit 9,843 points, approaching its short term-target nearing 10,000 points.

The small and mid-cap index EGX70 also achieved limited rise by 1.97 percent, ending the month at 577 points. The broader index EGX100 also hiked 5 percent to close the month at 1,145 points.

Market capitalization surged 5.4 percent, totaling 562.7 billion EGP, compared to 500 billion EGP at the end of December.

Trade volumes and value witnessed a remarkable slip in January, totaling 21.7 billion EGP with 2.888 million securities traded on 476,000 transactions, down from 27 billion EGP and 4.764 million securities traded on 623,000 transactions.

Experts say the benchmark was pushed by the launch of Egypt’s 1st exchange-traded-fund (ETF) XT-MISR earlier this month at a total value of 10 million EGP ($1.4 million) divided into 1 million certificates of 10 EGP each.

This fund allows investors to cover markets in different countries or sectors at costs lower than other investments; The Beltone Financial Holding Company was granted a license by EGX management for establishing XT-MISR through the main EGX index EGX30.

“Launching the first ETF will add a new category of investors to Egypt’s stock market, as they will get the benefit of trading a single security that reflects the performance of the top 30 companies listed in the EGX,” Mohamed Kotb, the head of Mubasher Asset Management told The Cairo Post earlier this month.

“On a macro level, ETFs could be a good tool for promoting investment in general for Egypt since the ETF will ultimately reflect the stock market performance which is basically a mirror of macro and micro economic performance, that’s largely expected to improve gradually on the medium-term,” Kotb added.

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