Capital Market

The capital market is one of the main drivers of economic growth. It plays a key role in transferring accumulated savings into investments in new projects that achieve economic and social development. Capitalizing on its high tech-driven instruments and sound regulatory framework, the capital market has been able to provide an attractive investment climate.

In 2022 the capital market indices witnessed a significant growth on the back of the Egyptian economy’s recovery from the economic repercussions of the coronavirus pandemic.

The value of securities issuances (stocks, bonds, and sukuk) reached EGP 601.7 billion in 2023 compared to EGP 366.5 billion in 2022, with a 64.1% growth.

FRA also approved the first multi-issuance of future cash flow securitization program with a value of EGP 2 billion. The first issuance of the three-year program amounted to EGP 800 million.

Market capitalization increased by 78.9% to EGP 1719.7 billion at the end of 2023, compared to EGP 961.2 billion in 2022.

Total value traded soared by 197.4% to EGP 3,222.7 billion in 2023, compared to EGP 1,083.5 billion in 2022. This robust growth was ascribed to a 294.4% surge in the bonds value traded registering EGP 2,487.6 billion in 2023 from EGP 360.8 billion in 2022 after the beginning of trading treasury bills as of September 2023.

The stocks value traded recorded EGP 735.1 billion in 2023, up 62.4% from EGP 452.3 billion in 2022.

The EGX indices recorded a significant increase in 2023, EGX30 index reached approximately 24,894.26 points ending December 2023, with a 70.5% year-on-year growth. The EGX70 EWI and the EGX100 EWI registered an increase of 95.3% and 90.1%, respectively.

The percentage of non-Egyptian transactions accounted for about 17% of the total transactions in the stock market during 2023, while the share of Egyptian investors accounted for approximately 83%.

 

Investment Funds

The number of new investment funds approved by FRA in 2023 reached about 8, in addition to 3 new issuances of already established multi-issuance investment funds, bringing the total number of investment funds to about 147 by the end of 2023, including 138 open-end funds and 9 closed-end funds.

Net Asset Value of Mutual Funds certificates reached around EGP 145.2 billion at the end of 2022 (excluding funds that are currently covering their subscription).

Last modified: April 7, 2024

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