Does the Egyptian stock market crisis reflect the state of the country’s economy?

  • Ahmed Shousha
  • BBC – Cairo

photo released, Getty Images

Despite the announcement by the Egyptian Stock Exchange to close transactions in 2021 with an increase in its indicators, market capital and average daily trading, there are questions about the reasons for the continuation of its crisis represented by the small number of companies to about ‘ a fifth, compared to what it was 20 years ago, as well as the widespread decline in foreign investment.

The Egyptian Stock Exchange indicated on Thursday that its main index, “EGX 30”, had risen by 10.18 percent during 2021, after falling by 22.3 percent during the previous year due to the repercussions of the Corona epidemic, and its market capitalization (the market value) of the companies listed on the stock exchange increased by 18 percent to reach 765 billion Egyptian pounds (about 49 billion dollars), and the average daily trading (buying and selling of shares) increased by 31 percent increased.

However, net foreign transactions have fallen 57 percent since last year as sales, according to a report by the Stock Exchange Information Center issued days before the stock exchange’s annual report, titled “The year of recovery and preparation for the future.”

The chairman of the Egyptian Stock Exchange, dr. Mohamed Farid, told the BBC that during the first half of the new year, the stock exchange will make foreign tours to attract foreign investors and revive the market, while preparing for the proposals of five new candidates. companies.

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