Egypt’s EGX best-performing stock market in Middle East in 2022
Egypt’s stock exchange (EGX) has been the best-performing stock market in the Middle East region throughout 2022 given a bull run triggered by the International Monetary Fund (IMF) agreement that erased losses in the fourth quarter.
According to Reuters, the benchmark EGX 30 index ended 2022 22 percent higher, beating out the Abu Dhabi Securities Exchange (ADX), which gained 20.3 percent during the year.
The Egyptian bourse was the eighth best-performing exchange in the world, coming below the likes of the Venezuelan bourse, which surged 225 percent during the year, and Turkey’s Borsa Istanbul 100, which climbed 197 percent to record highs.
The announcement of Egypt’s agreement with the IMF sparked a major reversal in fortunes for the country’s benchmark index, which by the middle of the year had been deep in bear territory and trading at its lowest level since November 2016. Since its July low, the EGX 30 has jumped 69 percent to reach highs not witnessed since January 2019.
Meanwhile, the Saudi Tadawul ended the year 7.1 percent in the red at an almost 20-month low. This was the Saudi exchange’s first annual loss since 2017.
2022 was a turbulent year, as stock markets worldwide struggled with inflationary pressures, soaring interest rates, and wary investors in the light of the ongoing war in Ukraine, Wael Makarem, senior market strategist financial services provider Exness, told Reuters.
“The fear of an economic slowdown has gripped markets throughout the year and could extend to 2023 as a recession remains possible,” Makarem added.