By: Heba El-Kordy
Cairo – Mubasher: The Egyptian Exchange’s (EGX) benchmark EGX30 index surged 21.66% or 2,674.25 points, reaching 15,019 points during 2017.
The main EGX30 index saw trading of 61.6 billion shares, with a turnove of EGP 191.1 billion in 2017.
The bourse’s market capitalisation value soared EGP 223.3 billion to EGP 824.91 billion, from EGP 598.35 billion.
The EGX is expected to continue its positive trend and to reach highest levels in 2018, backed by the planned governmental initial public offerings (IPOs) that aim to attract about one million investors, analysts told Mubasher.
The impact of the EGP flotation is about to end and after that the results of economic reform will start to appear, the analysts added, noting that the Foreign investors were the catalyst for the EGX in the previous period.
High peaks in EGX to continue
The EGX was the first Egyptian body which was impacted positively by the economic reforms during 2017 that led the bourse to reach higher than 15,000, Saeed El-Feky, CEO at Osool Brokerage said.
The EGP devaluation encouraged the Foreign investors to invest in the EGX as the prices decreased by 100%, El-Feky added.
The EGX stated that it registered the highest growth in the Arab stock markets in 2017 with 19% growth.
Al-feky forecast that EGX will continue registering high peaks during 2018, especially after the economic reforms.
Egypt’s government is implementing programme to carry IPOs for 24 companies which are subsidiaries for Business Sector Information Center.
Egyptian Financial Group Hermes Holding (EFG Hermes) forecast that Egypt will be the best destination for investments in the MENA and North Africa regions during 2018 as there are indices that the main EGX30 index will rise 20% to 17,000 poitns.
EGX70 index was best performer in 2017
Hesham Hassan, head of technical analysis at Acumen for Securities expected that the EGX will register more increases in 2018, amid stability in the financial situation.
The EGP’s devaluation impact will start ending during 2018, Hassan added.
The Foreign investors were net buyers in the EGX with EGP 7.4 billion during 2017.
The small and medium-sized enterprises index EGX70 was the best performer in 2017, especially the stocks in fertilizers and governmental sectors as some of stocks soared more than 200%.
Since the start of 2017, the EGX70 surged 78.59% or 364.22 points, reaching 827.66 points, with a liquidity of EGP 52.8 billion.
Some of stocks which rose were Egypt Gas (EGAS), Elsewedy Electric Co, Abu Qir Fertilizers, and Egypt Aluminum.
Hassan indicated that the benchmark EGX30 index may aim new levels especially within the rise in the Commercial International Bank’s (CIB) stock.
Egyptian investors took over 72.6% of the EGX’s trading, followed by foreign traders with 17.4%, and the Arabs with 9.9% during 2017, according to MubasherTrade PRO’s data.
In 2017, the individual investors were net sellers with EGP 15.5 billion acquiring 55.9% of the EGX’s trading, while the institutional investors were net buyers with EGP 15.5 billion to take over 44.1%.
The CIB's– Egypt stock increased 5.84%, reaching EGP 77.35, generating EGP 20 billion.
Translated by: Mohamed Hesham Azab
