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The exit of foreign investments and fears for the decline of the pound, the Egyptian stock market

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Foreign institutional and individual investors continue to sell major shares of the Egyptian stock exchange during trading this week.

Yesterday, most of the major stocks recorded their lowest levels in at least a year, led by Commercial International, Swedish, Orascom Investment, Fawry and others.

Analysts attributed foreign investor reports to a state of anticipation for Egypt’s negotiations with the International Monetary Fund on possible new loans, as well as a possible rise in interest rates in Egypt in the next period after the recent stabilization trend of the same.

The market is also expecting the periodic review of the MSCI indices for emerging markets in August.

Interestingly, the Egyptian stock market is one of the worst markets performance during the first half of questyear, as the main EGX 30 index fell by around 23%.

In an interview with Al Arabiya, the co-director of strategic research at Beltone Financial Holding Company said there are no concerns about the market position in MSCI’s emerging market indices.

Hisham added that foreign investors were expected to leave for several reasons, including the lack of new IPOs for the Egyptian stock market, as well as outflows to Gulf markets.

He said the deal with the International Monetary Fund could be a catalyst for bolstering the market, but the main factor in reviving the stock exchange is the return to listing of new companies.

He stressed that the Egyptian market must keep up with the momentum of emissions witnessed by Saudi Arabia, Abu Dhabi and Dubai, which see a new listing every 25 days.

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