The market capital of the Egyptian Stock Exchange surged in trading on Wednesday, posting a record historic, 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.
The highest recorded market capitalization number was recorded in April 2018, with a value of £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 listed securities and investors’ assessment of current economic conditions, and that the investment in stock exchange represents the best hedge against challenges today.
The head of Al-Awael Company for Financial Consultations Wael Enaba said that the Egyptian stock witnessed the highest swing in its history during today’s session by 1000 points as the market rebounded by 500 points after losses of 500 points.
Enaba added, in an interview with Al-Arabiya, that the decline in initial transactions since today’s session came after the announcement of high-yield investment certificates, but, about an hour later, a decision was issued to liberalize the exchange rate, and the dollar rose against the pound to £26.50, and the situation 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 soared to unprecedented levels in the official market on Wednesday after the Central Bank raised its selling price to £26.49 against the pound, and to £26.36 for buying.
And in the National Banks and Misr, the largest government banks in Egypt, the dollar recorded a price of 26.25 pounds in purchase and £26.3 in sale.
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 registered the highest price in the official market, in the Arab Investment Bank, 26.51 pounds in purchase and £26.55 in sale, while it recorded £26.3 in purchase and £26.4 in sale in Commercial International Bank of Egypt’s 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.
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