FEDERATION OF EURO-ASIAN STOCK EXCHANGES
ANNUAL REPORT JUNE 2013
EGYPTIAN EXCHANGE
The Egyptian Exchange in 2012
The Egyptian Exchange.... The Sole Winner in
the midst of All Economic Difficulties
Egypt has witnessed tough economic
conditions in 2012 as the country has passed
through a series of consecutive political
events which had a great impact on Egypt’s
economic performance, where the surrounding
circumstances were not helping to achieve high
growth rates, improve the investment climate or
restore the investors’ confidence.
The Egyptian Economy grew by 2.2% in
2011/2012, which is considered a higher rate
than the one realized last year (1.8%), yet it’s
still below the required level that would restore
the Egyptian economy’s strength. The foreign
investments were also affected, reaching US$ 2.6
billion during the first 9 months of the year 2012.
Faced by all these economic difficulties, the
state budget deficit inched up to reach 10.8%
of the GDP for the fiscal year 2011/2012
compared to 9.8% in the previous year. This
was accompanied by a decline in Egypt’s net
international reserves, reaching US$ 15 billion
in December 2012 compared to US$ 18 billion
in December 2011, which put high pressure on
the value of the Egyptian pound, resulting in
pushing the value of the Egyptian pound down
to reach 6.32 LE/US$ at the end of December
2012 compared 6.032 LE/US$ at the end of
December 2011.
On the contrary to all other sectors in the
economy and despite all surrounding
difficulties that led to significant fluctuations in
its performance during the year, the Egyptian
Exchange showed a remarkable performance,
growing by 51% in 2012; a level that hasn’t
been reached since 2007, which is considered
the highest growth among all emerging and
developed markets (after Turkey) in 2012.
Likewise, EGX 70 & EGX 100 indices soared by
15% & 24%, respectively.
Trading volumes have relatively improved in
2012 compared to the year before, with the
volume traded reaching 34 billion securities; a
level that hasn’t been reached even in the recent
years pre-revolution. Likewise, the value traded
soared to LE 185 billion compared to LE 148
billion in 2011, and the number of transaction
surged to 6 million transactions compared to
5.6 million transactions in 2011. The market
capitalization for the listed companies on the
main market has also increased to reach LE 376
billion at the end of 2012 up from LE 294 billion
the previous year.
EGX has witnessed a relatively high trading
records in 2012 compared to 2011, registering
a trading value of LE 185 billion as opposed to
LE 148 billion last year. Moreover, the volume
traded soared to reach 34 billion securities in
2012 compared to 18.5 billion securities in 2011.
Likewise, the number of transactions recorded
6 million transactions versus 5.6 million
transactions in 2011.
The value traded of the main market amounted
to LE 166.5 billion in 2012 compared to LE 131
billion in 2011.
On the other hand, Over the Counter (OTC)
market registered a trading value of LE 18 billion
during the year compared to LE 17.5 billion
in 2011. Meanwhile, the OTC trading volume
retreated to 1.4 billion securities in 2012, down
from 1.6 billion securities last year.
From another perspective, Nilex market trading
figures surged in 2012 compared to the year
before, recording a trading value of LE 247
million compared to LE 191 million in 2011
while the trading volume amounted to 81 million
securities in 2012 as opposed to 31 million
securities last year.
The market capitalization of the main market
listed stocks witnessed a 28% increase in
2012, concluding the year at LE 376 billion as
opposed to LE 294 billion at the end of 2011,
representing 24% of GDP.
The Egyptian market started the year on a
positive note, following the parliamentary
elections and the transfer of legislative power
to the parliament. The market continued its
good performance till the end of February &
took off remarkably during the month of March.
The market, however, pulled down affected by
the political unrest related to the constitutional
committee & the preparation for the presidential
election. This lackluster performance lasted till
the end of the Presidential election’s second
round.
With the beginning of the 2nd half of the year,
the market showed a good performance till
the month of November, during which political
tensions took place, which affected the market
negatively till the beginning of December. The
market, however, rebounded again on the
back of the finalization of the constitutional
referendum, which pushed the market up to
continue rising till the end of the year despite
being disturbed by the credit rating downgrade.
The dividend yield for the Egyptian Exchange
has reached 8.3% versus 2.6% for the emerging
markets and 3.2% for the Africa and Middle East
(according to Standard and Poor’s). This growth
is mainly attributed to the investors’ positive
outlook for the Egyptian market. Despite the
critical conditions experienced by the Egyptian
economy, yet the companies’ profitability is still
the highest among all emerging markets.
Given more economic and political stability, the
Egyptian Exchange is expected to show a better
performance and realize higher growth rates in
the coming period.
Key Information Contacts
Ministry of Finance www.mof.gov.eg
Ministry of Investment www.investment.gov.eg
Central Bank of Egypt www.cbe.org.eg
Egyptian Financial Supervisory Authority www.efsa.gov.eg
Misr for Clearing, Depository and Central Registry www.mcsd.com.eg
SMEs Market (NILEX) www.nilex.egyptse.com
CONTACT INFORMATION
Contact Name Mr. Mohamed Farrag E-mail [email protected]
Website www.egx.com.eg
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