EGX30: Record figures

Two days following the trial of ousted President Mohamed Morsi, the Egyptian Stock Exchange has reached a record high since 26 January 2011.

Since the start of Morsi’s presidency in June 2012, the main index, EGX30, did not exceed the 6,000 resistance mark, reaching a high of 5,964 on September 25, 2012. The index since fluctuated between this peak and a trough of 4,524 on June 23, 2013.

Following Morsi’s ouster on 3 July, the EGX30 saw a near steady rise, closing on Wednesday at 6370.6, exhibiting a rise of 2.38 percent. Market volume reached a record LE900 million, demonstrating ample liquidity on the Egyptian market.

Deputy Chief of the Securities Division, Eissa Fathy, told Egynews on Wednesday that the market’s reaction reflects the fact that fears related to Morsi’s trial have dissipated followed the absence of violence on the day of the first hearing.

Foreign buying was strong, taking up 16 percent of market transactions, an indicator of the market’s continuing uptrend, Fathy said, adding that political developments are echoed through the economy, meaning that lower social and political risks are met with higher investments.