ALBAWABA – The Egypt stocks index, EGX 30 Index, rose 1.7 percent in Sunday trading, hitting a record high as investors hedged against surging inflation, Bloomberg reported.
The Egypt stocks index breached its 2018 peak and has risen over 91 percent from its October low, up 1.8 percent year-to-date in dollar terms.
According to Bloomberg, the EGX 30 outperformed MSCI Emerging Markets Europe, Middle East and Africa Index.
Meanwhile, major shareholders, including the Saudi Public Investment Fund, are preparing to launch a local Initial Public Offer (IPO) in Saudi Arabia for a combined 30 percent stake in the Egyptian company.
Amid skyrocketing inflation, Egypt stocks index hit record high
On the domestic front, supply issues linked to the conflict in Ukraine and three devaluations of the Egyptian pound since early 2022 helped push annual inflation to a record 36.5 percent in July.
Multiple devaluations of the Egyptian pound drove inflation through the roof - Shutterstock
Investors and analysts expect another devaluation, although that appears to be largely contingent on the Egyptian government being able to secure adequate foreign-currency buffers.
Such buffers include inflows from state-asset sales, to clear an import backlog and make an orderly adjustment.
Egypt is also awaiting an International Monetary Fund review of a $3 billion loan program agreed last year, Bloomberg reported.
