Election day bonanza raises Egypt's bourse to highest levels since 2008
The Egyptian Stock Market witnessed a significant rise in its main index EGX-30 index on Monday, recording 8,736.28 points, its highest level since 2008.
According to Ihab Saeed, head of technical analysis at Osool ESB Securities Brokerage, the rise can be attributed to the “optimism” the country is witnessing due to the elections. He added that after the elections the stock market is expected to surge even more as more investors would be willing to enter the Egyptian market.
Saeed said the highest level the stock market has witnessed occurred in 2008, when it registered 12,000 points, followed by a slump for five years. “During those five years the highest peak was recorded at 7,700 points,” he pointed out.
He added that after the elections in 2012 the stock exchange rose from 4,160 points to 6,024, registering an increase of 1,864 points. After the ouster of former president Mohamed Morsi in July 2013, the stock market rose from 4,752.22 to 8,736.28 points.
The EGX-70 index, which includes small and medium sized companies, deteriorated by 0.31%, closing at 613.78 points compared to 615.67 points recorded on Sunday, while the EGX-100 experienced a drop as well by 0.64% recording 1,073.3 points compared to 1,080.17 on Sunday.
The EGX-20 capped index has decreased by 0.02%, closing at 10,530.77 points.