The Egyptian stock market, one of the most famous and reliable stock exchanges in Africa, just hit a new record high. The Egyptian Exchange (EXG) 30 Index has hit record highs as investors in the North African country look to hedge themselves against rapidly rising inflation and currency devaluations.
The Egyptian stock exchange hit record highs on Friday, September 1, 2023, with the EGX 30 index closing up 2.1% at 11,657 points. This is the highest level the index has reached since February 2020.
The gains were driven by strong performances from the banking and real estate sectors. The Commercial International Bank of Egypt (CIB) was the top performer, rising 4.1%, while Emaar Misr for Development and Investment gained 3.9%.
The rally comes amid a number of positive factors for the Egyptian economy. The country's tourism sector is recovering, with tourist arrivals in the first half of 2023 up 18% from a year earlier. The government is also implementing a number of reforms aimed at stimulating growth.
The record highs on the stock exchange are a positive sign for the Egyptian economy. However, it is important to note that the market is still volatile and could experience some pullbacks in the near future.
In fact, there are many factors that contributed to the rally in the Egyptian stock market. First, the recovery of the tourism sector. Indeed, Egypt's tourism sector is recovering from the COVID-19 pandemic. Tourist arrivals in the first half of 2023 were up 18% from a year earlier. This is a positive sign for the economy, as tourism is a major source of foreign currency.
Second, the Egyptian government made some important reforms. The Egyptian government has been implementing a number of reforms aimed at stimulating growth. These reforms include cutting taxes, reducing bureaucracy, and improving the investment climate.
Third, the Egyptian economy has developed strong fundamentals. Egypt's economy is growing at a healthy pace. The country's GDP grew by 5.6% in 2022 and is forecast to grow by 5.8% in 2023.
Fourth, the Egyptian central bank lowered interest rates. Interest rates in Egypt are among the lowest in the world. This makes it attractive for investors to put their money into Egyptian assets.
The Egyptian stock market has been growing in recent years. In 2022, the market capitalization of the EGX 30 index, which tracks the 30 largest companies listed on the Egyptian stock exchange, reached $100 billion. This is the highest level of market capitalization since 2010.
The growth of the Egyptian stock market is a positive sign for the economy. It shows that investors are confident in the future of the Egyptian economy and are willing to invest their money in Egyptian companies.