By: Heba El-Kordy

Cairo – Mubasher: The benchmark EGX30 index declined by around 1,983.37 points, or 13.21%, at 13,035.77 points in 2018, with a turnover of EGP 188 billion traded through 43 billion shares.

The Egyptian Exchange’s (EGX) market capitalisation retreated by EGP 72 billion last year to EGP 749.7 billion from EGP 824.92 billion.

The small- and mid-cap EGX70 index fell by 16.16% to 693.83 points in 2018, losing 133.8 points.

Meanwhile, the broader EGX100 index went down by 12.4% at the end of the year to 1,727.21 points, versus 1,971.76 points in 2017. 

As for the heavyweight Commercial International Bank (CIB), it plummeted 3.05% to EGP 74.99, with a turnover of EGP 20.6 billion.

It is worth noting that the EGX30 index had jumped 21.66% to 15,019 points in 2017, gaining 2,674.25 points.

The EGX in 2019

There are many factors that could negatively or positively impact the EGX’s performance in 2019, Amr Elalfy, head of research at SHUAA Securities Egypt, said.

At the level of positive factors, Elalfy projected the Central Bank of Egypt (CBE) to maintain cutting interest rates, which in return will help companies to borrow and accelerate their capital investments.

The implementation of the government initial public offerings (IPO) programme this year is one of the key market-boosting catalysts, he indicated, pointing out that the non-listed firms may attract new investments to the EGX.

He also noted that any decrease in the Egyptian pound value will boost the tourism sector and export firms, which will ease the country’s trade deficit.

On the other hand, he highlighted the negative factors that include raising interest rates due to the global landscape, which will consequently affect the country’s budget deficit.

For his part, branch manager at Mubasher Financial Services (MFS) Safwat Abdel Naeem forecast the EGX to rise in 2019 if it settles above 13,300 points.

The EGX30 index is likely to test 14,000 points in the first half of this year ahead of launching the state-owned IPOs programme and the restructuring of Global Telecom’s stock, Abdel Naeem said.

He expected the index to hover around 14,800 points in February.

The index may rebound from 12,500 points in the first two months of the year if it fails to settle above 14,000 points, he added.

Q4-18

The benchmark EGX30 index fell 10.8% to 13,035.77 points in the last quarter of 2018, losing 1,580.7 points.

The EGX70 index tumbled by 2.6% to 693.83 points in Q4-18, versus 712.4 points. 

 

Translated by: Mai Ezz El-Din