What did the stock market gain after two years of floating the pound? 42,000 new investors

Two years ago, on the morning of November 3, 2016, Egyptians realized the most important economic event in modern history of Egypt when the central bank officially announced the decision to liberalize the rate. exchange rates and freeing banks of their prices according to the mechanisms of supply and demand. The decision to float the currency or float the pound sterling.

The Egyptian stock market was at the top of the list of the main beneficiaries of the resolution in its first year, before being gradually affected in the second year by other factors, mainly external factors such as the emerging markets crisis and the trade war between the United States and China.

Between November 3, 2016 and November 1, 2018, the market capitalization of the restricted stock market in the domestic market increased from £ 413 billion to £ 751 billion, for £ 338 billion, an increase of 81% . The market capitalization of the main index "EGX 30" 227 billion Egyptian pounds to 462 billion Egyptian pounds, worth 235 billion Egyptian pounds, an increase of 103%.

The market capitalization of EGX70 increased from EGP 66 billion to EGP 170.5 billion, for a value of EGP 104.5 billion, an increase of 155%. The market capitalization of 100 EGX rose from EGP 294 billion to LE 632.5 billion, an increase of 115.5 billion pounds.

Since the listing decision, the EGX 30 index has risen 57.5% to 13,202 points, 99.5% to EGN70 and 687 points, while the EGX100 index has jumped 112% to to reach 1722 points.

The country has been implementing a program of economic reform for about two years, which includes the liberalization of the sterling exchange rate, the gradual reduction of fuel and electricity subsidies, and the adoption of 39, a set of legislative measures, particularly in the area of ​​taxation and investment, which have attracted some 42,000 new investors since November 2016.

The new Egyptian Stock Exchange (EGX) has sought to implement measures to improve the business environment, including reducing the period of suspension for the first time since 2002 from 30 minutes to 10 minutes, which associated with several other factors, contributed to the rise in market value, the limits of the suspension and the price limits during the trading session during which the announcement of the cash distribution, in addition to trading margin trading on the ETF documents within the securities allowed trading a margin of 80%.

Since the decision to liberalize the pound sterling exchange rate, net purchases by non-Egyptians amounted to 23.3 billion Egyptian pounds, compared with 700 million Egyptian pounds in the same period before the floating decision, with 10 new offers worth more than 10 billion pounds sterling.