Market experts asserted that the trading value of foreign transactions on the Egyptian Exchange (EGX) amounted to EGP 8.34bn from early 2017 to the beginning of November, while the trading value of Arab transactions reached EGP 635m during the same period. The experts expect foreign investment flows will continue due to a variety of reasons. "The EGX board has to utilise the The 21st ASEA Annual and Flagship Conference to increase the trading value of foreign and Afro-Arab transactions on the EGX," market experts said. Hossam Elghayish, managing director of Aswaq for Managing Financial Investments, revealed that the trading value of foreign transactions on the EGX was tripled after the Central Bank of Egypt (CBE) floated the Egyptian Pound in November 2016, amounting to EGP 13bn in November. Elghayish further noted that foreign investments in government debt instruments attained about $15bn, after the flotation of the Egyptian Pound. "Due to the flotation of the Egyptian Pound, the daily average of trading value has doubled, to rise from EGP 540m to EGP 1.1bn," Elghayish highlighted. Furthermore, the managing director of Aswaq stated that foreign investment flows are expected to continue, concurrent with the issuing of the new investment law, while the CBE expected the trend to reduce interest rates, and to bring stalled initial public offerings (IPOs) of many companies to be listed on the EGX. According to Elghayish, the diversity in Egypt's economy attracts foreign investors to trade on the EGX, especially that growth rates reached up to 4% throughout the fiscal year (FY) 2016/2017. "Moreover, the EGX's newly elected board seeks to improve market tools and support a variety of available investment choices, in addition to attracting capital funds from many areas around the world," he said. It is worth mentioning that the benchmark EGX30 index inched up 69%, in the year-period since November 2016, rising from 8.447 points to 14.319 points. Moreover, the market capital inched up 87%, from EGP 417bn in November 2016, to reach about EGP 780bn in the corresponding period of 2017. The conference is being held under the sponsorship of Egyptian Prime Minister Sherif Ismail. Its attendees include minister of investment and international cooperation, Sahar Nassr, a large number of African ministers, and delegations from regional and international financial institutions.
