Strong performance for the Egyptian Stock Exchange, with market gains exceeding 60 billion Egyptian pounds
The Egyptian stock market closed today with a significant collective rise, buoyed by buying momentum from both local and foreign investors, continuing its recent positive performance. The market capitalization of listed companies added substantial gains of EGP 62 billion, closing at EGP 3.230 trillion, amidst active trading.
In terms of index performance, the Egyptian Exchange's main index, EGX 30, jumped significantly by 2.88%, reaching 48,978.48 points. Gains extended to the EGX 70 index for small and medium-sized enterprises, which rose by 1.96% to 12,710.24 points. The broader EGX 100 index also climbed by approximately 2.06%, closing at 17,561.51 points, reflecting a broad upward trend across most market sectors.
Economic context and historical stock market performance
This positive performance comes amidst a rapidly changing economic climate. The Egyptian Stock Exchange, one of the oldest in the Middle East and Africa, dating back to 1883, has long been a reflection of the national economy. The recent gains reflect a cautious optimism among investors, fueled by a package of economic reforms adopted by the Egyptian government, including the complete liberalization of the exchange rate. This has helped eliminate the parallel currency market and increase the attractiveness of Egyptian assets denominated in pounds.
The importance of performance and its impact on investment
The significance of this surge lies in its ability to bolster investor confidence in the local market. Domestically, the rise in share prices increases investor wealth and stimulates market liquidity, encouraging companies to expand and go public. Regionally and internationally, the stability and positive performance of the Egyptian stock market make it a more attractive investment destination, particularly after major investment deals such as the Ras El Hekma development project, which injected significant dollar liquidity into the economy, positively impacting the valuations of listed companies and attracting further foreign investment.
Total market transactions today reached approximately EGP 222.2 billion, of which around EGP 9.4 billion were in the stock market, indicating significant activity and healthy liquidity. Traders anticipate this positive momentum will continue, supported by expected economic stability and the ongoing implementation of the structural reform program.
