EGX sees significant growth in Q2 ’24 – FRA

Egyptian investors dominated stock transactions in the second quarter of 2024, holding a substantial 80.5 per cent share, compared to 11.5 per cent for foreign investors and 8.1 per cent for Arab investors. The Egyptian Financial Supervisory Authority’s (FRA) latest report highlights a strong local engagement in the stock market during this period.

The FRA report measures to implement structural reforms and enhance the private sector’s role, combined with the Egyptian Central Bank (CBE) decisions to lower the pound’s exchange rate against the dollar, contributed to a 44.3 per cent increase in the value of stock trading from the second quarter of 2023. This surge reflects a restored investor confidence in the Egyptian stock exchange and higher trading volumes.

Additionally, trading in bonds and treasury bills reached an unprecedented level, totalling approximately 2,213 billion Egyptian pounds in the second quarter of 2024. This figure represents a dramatic 4,978 per cent increase from the same period in 2023, driven by the introduction of these securities to the Egyptian stock exchange in September 2023.

The market capitalisation of listed stocks in the main market climbed to about 1,876.3 billion Egyptian pounds by the end of the second quarter of 2024, marking a 61.46 per cent increase from the previous year. The market capitalization to GDP ratio stood at 18.5 per cent, the highest since 2017.

Attribution: FRA Q2 report

Subediting: Y.Yasser