The market capital of the Egyptian Stock Exchange rose in trading on Wednesday, posting an all-time high, the highest in the history of the Egyptian Stock Exchange, which comes after a new reduction in the exchange rate of the Egyptian pound.
The market capital of companies listed on the Egyptian Stock Exchange, during today’s trading session corresponding to January 4, 2023, reached an unprecedented historical number, or 1.013 trillion pounds.
It was the highest market capitalization figure on record In April 2018, worth £1.008 trillion.
The number of transactions executed at the end of today’s session exceeded 115.6 thousand, the highest in the history of the Egyptian Stock Exchange.
Market capital increases reflect the performance of publicly traded securities and investors’ assessment of current economic conditions, and that stock market investing is today’s best hedge against challenges.
The head of the Al-Awael Company for Financial Consultations, Wael Enaba, said that the Egyptian stock market witnessed the highest fluctuation in its history during today’s session by 1000 points, as the market rebounded by 500 points, after losses had been 500 points.
Enaba added, in an interview with Al-Arabiya, that the drop in initial transactions from today’s session came after the announcement of high-yield investment certificates, but, about an hour later, the decision was issued to liberalize the exchange rate, and the dollar rose against the pound to £26.50, and that changed.
He explained that the purchasing power of Egyptian stocks came back into the equation of the depreciation of the pound against the dollar, as happened last October.
Enaba said the increase was most noticeable in real estate stocks and stocks of exporting companies.
The price of the dollar in Egypt had risen to unprecedented levels in the official market today, Wednesday, after the Central Bank raised its price to 26.49 for the sale against the pound, and to 26.36 pounds for the purchase.
And in Al-Ahly and Misr Banks, the largest government banks in Egypt, the dollar recorded a price of £26.25 for buying and £26.3 for selling.
Exchange rate flexibility has been a key request from the International Monetary Fund, which in October approved a 46-month rescue package for Egypt worth $3 billion.
The dollar recorded the highest price in the official market, in the Arab Investment Bank, £26.51 buying and £26.55 selling, while it registered £26.3 buying and £26.4 selling in the Commercial International Bank of Egypt, the largest private bank.
The dollar recorded the largest daily move since the central bank allowed it to fall 14.5% on Oct. 27, according to the data released.
It used to trade at 24.70 pounds to the dollar.
