The Egyptian Stock Exchange witnessed an exceptional performance at the close of trading today, with all its indices closing significantly higher, reflecting a prevailing sense of optimism among both local and foreign investors. The market capitalization of listed companies achieved substantial gains of approximately 90 billion Egyptian pounds, jumping to 3.385 trillion pounds, compared to the previous session's close.
This strong rally was fueled by high trading volumes, with total transactions reaching approximately EGP 16.4 billion, including around EGP 8 billion in stock market trading alone. This momentum propelled the EGX 30 index, which tracks the 30 largest listed companies, to a 3.6% increase, reaching a new record high of 52,308.32 points, reflecting the strong performance of leading stocks.
Context of positive performance and economic background
This strong stock market performance cannot be separated from the context of the major economic reforms adopted by the Egyptian government and the Central Bank recently. After years of challenges, the authorities made decisive decisions, including fully liberalizing the exchange rate of the Egyptian pound and raising interest rates to curb inflation. These measures, despite their short-term difficulties, helped restore the confidence of international institutions and foreign investors, paving the way for massive investment inflows, most notably the Ras El Hekma development project, which injected tens of billions of dollars into the Egyptian economy.
The importance of the event and its expected impact
This rise is a significant indicator of the beginning of the Egyptian economy's recovery and the restoration of its investment appeal. Domestically, this performance boosts the confidence of individual and institutional investors in the market, encouraging further liquidity in the stock market as an investment tool capable of generating returns that exceed inflation rates. Regionally and internationally, the performance of the Egyptian Stock Exchange, one of the oldest and largest stock exchanges in the Middle East and North Africa region, is once again placing it on the global investment map. This upward trend is expected to attract further foreign portfolio inflows (hot money), contributing to exchange rate stability and bolstering the country's foreign currency reserves.
The gains weren't limited to blue-chip stocks; they extended to small and medium-sized stocks as well. The EGX 70 index rose by 1.02% to close at 13,063.09 points. The broader EGX 100 index also climbed by approximately 1.54%, reaching 18,205.27 points, confirming that the wave of optimism encompassed a wide range of market sectors.
