FILE - Employees in the EGX following performance of the trading session on December 12, 2017 FILE - Employees in the EGX following performance of the trading session on December 12, 2017

Foreign organizations represent 75% of EGX's investors

Mon, Aug. 27, 2018
CAIRO – 27 August 2018: Foreign organizations dominated 75 percent of the registered investors at the Egyptian Exchange (EGX) by the end of May 2018.

The Egyptian Exchange said in a statement Monday that this percentage reflects the confidence of foreign portfolios in the Egyptian market in light of the bold economic reforms implemented by the Egyptian government since November 2016, which contributed to restoring macroeconomic stability and bolstered the participation of the private sector.

Egypt floated its currency in November, 2016, losing 50 percent of its value as a part of an economic reform program.

Egypt embarked on a bold economic reform program that includes floating its currency, cutting energy subsidies and introducing new taxes to cut the budget deficit.

The Cabinet announced on June 16 lowering the fuel subsidy to 25 percent, after cutting electricity subsidies on June 12, raising prices by an average of 26 percent in the fiscal year of 2018/2019 that began in July.

According to EGX survey, “Classification of registered brokers on EGX by end of May”, 98 percent of individual investors are Egyptians and 2 percent are foreigners.
As per Organizations, the survey revealed that 75 percent are foreigners and the other 25 percent are Egyptians.

The net foreign purchases on EGX recorded LE 29 billion since the liberalization of the Egyptian currency and lowering energy subsidy in November 2016, the statement read.

On another note, EGX ended Sunday - first session after Eid al-Adha holiday- on mixed note, and market capitalization gained LE 44.3 million, amid Egyptian and Arab selling.

The benchmark EGX30 lost 0.22 percent, or 34.36 points, to close at 15,239.03 points.
Meanwhile, the equally weighted index EGX50 increased 0.31 percent, or 7.67 points, to reach 2,519.85 points.

The small and mid-cap index EGX70 hiked 0.18 percent, or 1.31 points, reaching 739.31 points, and the broader index EGX100 inched up 0.16 percent, or 2.98 points, closing at 1,899.01 points.


There are no comments on this article.

Leave a comment