FEDERATION OF EURO-ASIAN STOCK EXCHANGES
ANNUAL REPORT JUNE 2013
EGYPTIAN EXCHANGE
EGX is
• A Board member of WFE (World Federation
of Exchanges).
• A member of ASEA (African Securities
Exchanges Association).
• A vice chairmen of FEAS (Federation of
Euro-Asian Stock Exchanges).
• A founder member of the Union of Arab
Exchanges.
• An affiliate member of the International
Organization of Securities Commissions
(IOSCO).
FUTURE OUTLOOK
EGX will continue exerting efforts to enhance
the efficiency of the market, raise investors’
awareness, promote the financial literacy and
improve the communication between EGX and
its stakeholders. Moreover, EGX will continue
its aggressive marketing plan to attract the big
companies to be listed in the market
On the other hand, EGX strives to build on
its success by accelerating the introduction
of a bundle of new investment products and
mechanisms into the Egyptian market such
Introducing of the first ETFs in 2014, sukuks,
activating the bonds market to finance public
projects, Activating NILEX to become a
financing tool for SMEs,
Working to develop a new listing rule to attract
promising companies and ensure investor
protection, turning into a self regulatory
organization (SRO) this would allow EGX to
conform to international standards in this regard.
In addition EGX continued its awareness
campaigns in different governorates about the
investment tools available in the market.
Despite the Difficulties EGX
Performance is the Best
The Egyptian market faced several challenges
during year 2013 due to the inconsistent political
stance affecting the economic performance.
Despite this the Egyptian stock market for
the second year in row proved its success in
comparison to other investment tools rising
by 24% during 2013. Worth mentioning that a
rise of 43% took place since 30 June 2013, a
distinctive performance that lead to a cumulative
return of more than 87% during the past two
years.
Towards the end of the year the market was able
for the first time to surpass January 2011 levels
either in terms of indices or market capitalization
which gained LE 51 billion during 2013 only.
EGX enticing performance placed the market
in an advanced ranking among all emerging
markets. Egypt ranked second according
to MSCI Indices in 2013 and first among all
Emerging markets during the past 2 years.
This comes despite the economic uncertainty
on the short run waiting for the end of the
transition period. The growth rate settled at 2.1%
for the FY 2012/13 with inflationary pressures
exceeding 10% and a devaluing Egyptian
pound sealing the year 2013 at LE 6.93 against
the dollar accompanied by a noticeable budget
deficit. Meanwhile a positive outlook remains for
the economic future on the medium and long
term following political stability.
On the liquidity front, EGX was able to maintain
trading aggregates close to previous year
and exceeding 2011 trading aggregates. EGX
managed to maintain trading records close to
2012 and surpassing the year 2011, registering
a trading value of LE 162 billion as opposed to
LE 185 billion last year. Moreover, the volume
traded soared to reach 29 billion securities in
2013 compared to 34 billion securities in 2012.
Likewise, the number of transactions recorded 5
million transactions versus 6 million transactions
in 2012.
The value traded of the main market amounted
to LE 146 billion in 2013 compared to LE 166.5
billion in 2012. Worth mentioning that a deal was
executed on National Societe Generale Bank in
March 2013, with a value of LE 17 billion. Also,
a deal was executed on Orascom Construction
Industries in July 2013, with a value of LE 11
billion.
Additionally, volume traded of the main market
reached 27 billion securities this year as
opposed to 33 billion securities in 2012.
On the other hand, Over the Counter (OTC)
market registered a trading value of LE 15
billion during the year compared to LE 18
billion in 2012. Meanwhile, the OTC trading
volume recorded 1.7 billion securities in 2013,
compared to 1.4 billion securities last year.
The year 2013 witnessed re-activating the
Intra-day trading mechanism, in May, which
was halted since the 25th of January revolution.
Intra-day traded stocks recorded a trading
volume of 895 million securities which represents
3% of the total volume traded of listed stocks.
Moreover, their value traded amounted to LE
2.6 billion, making up around 2% of the total
value of the listed stocks. Likewise, the number
of transactions executed through intra-day
trading registered 177 thousand transactions,
which accounted for 4% of the total number of
transactions of the listed stocks.
From another perspective, Nilex witnessed a
remarkable performance in 2013; this could be
attributed to increasing Nilex trading hours to
reach four hours. Nilex recorded a trading value
of LE 748 million compared to LE 247 million in
2012. Moreover, the trading volume amounted
to 254 million securities in 2013 as opposed to
81 million securities last year.
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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