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Is EGX poised to rebound in May after April’s losses?

Some hope that Egypt’s Stock Exchange (EGX) will regain in May the heavy losses incurred in April in response to the geopolitical tensions.
07.05.24 | Source: Ahram Online

The EGX lost over 7.5 percent of its market cap in April, declining to EGP 1.7 trillion from EGP 1.8 trillion.

Foreigners recorded a net sell-off totalling EGP 373.1 million, while Arabs registered a net sell-off of EGP 459.5 million, excluding transactions.

Yet, the EGX has started to recoup its losses in the first two sessions in May, with the market cap increasing by EGP 95 billion.

The stock exchange will resume operations on Tuesday, following holidays to celebrate Labour Day and Easter.

Mohamed Sharawy, a stock market expert at Pioneers Securities, told Ahram Online that the stock exchange is the lifeblood of the Egyptian economy as it is the primary gateway for direct and indirect investment.

Reasons for April losses

Sharawy attributed the decline, which persisted for about 45 sessions, to the geopolitical tensions in the region caused by the Israeli war on Gaza that contributed to a significant exodus of foreign investors from the local market.