Egypt’s stock market is among the best in the world in the four previous year as investors shift to emerging markets, the market’s chairperson Mohammed Omran said on Sunday on the sidelines of a press conference in Cairo.
Omran added that the stock market is expected to be on the rise in the coming period, boosted by currency flotation last November.
“Foreign investors have bought a net amount of EGP 11bn ($615.90m) worth of shares since the country floated its currency last November,” Omran confirmed.
The Central Bank of Egypt (CBE) floated the Egyptian pound in November to attract foreign capital after years of political instability drained the country’s reserves, and the currency has since more than halved in value.
Foreign currency flows have also been boosted after Egypt signed a $12bn, three-year loan programme with the International Monetary Fund (IMF).
Omran also revealed that the stock market has attracted a total of EGP 15bn in foreign investment since 2013.
Omran told Daily News Egypt on the sideline of the conference that the market will introduce new financial tools in the few coming months to attract more foreign investment.
“We have a plan for new financial tools which could be able to attract more foreign capital in the few coming period,” he confirmed.
Foreign investors are expected to inject free cash in Egypt’s stock market when the CBE embarks on a slew of monetary policy easing in the few coming months, according to a recent report issued by Frontera Research, of which Daily News Egypt managed to obtain a copy.
“Investor interest in Egyptian equities is visible in the long run. If inflation declines in the next two to three months and the central bank finds itself in a position to reduce rates thereafter, interest rate sensitive sectors like financial, real estate, and consumer discretionary could see a rise. The first two form 48% of the EGPT’s portfolio,” the report said.
Omran also revealed that the IPO since 2013 to 2017 stood at EGP 11bn.
“IPOs in the Egyptian market are the best in the region. Since 2010 to 2013, we have no activities for IPO. But there has been a huge shift in market activity since June 2013,” he added.
Omran also revealed that companies have hiked its capital by almost EGP 36bn in the last four years.
“Companies have raised lots of capital through the stock market in the last four years, which is a good sign for the market,” he confirmed.