The Clap
The EGX recorded a big increase in the last session, with the EGX30 closing on a 5.28% increase. Traded value on Thursday surpassed EGP 2.4 billion, significantly higher than traded values seen over the past eight months.
The Deets
Although CIB’s stock witnessed a small increase of 0.8%, the EGX30 still saw a large increase in its value due to the following stocks:
-E-finance (EFIH) increased by 18.69%
-Fawry (FWRY) increased by 18.6%
-Egypt Kuwait Holding (EKHOA) increased by 11.46%
-CIRA increased by 11.11%
These stocks recorded large gains due to the following reasons:
Head of investor relations at E-Finance told Thndr Claps the market saw large purchases from investment funds, particularly in the fintech sector.
According to Hany Genena, adjunct faculty at AUC, the devaluation of the EGP, the IMF deal, as well as companies buying large numbers of treasury stocks signaled to investors to invest in the market now.
Genena also clarified that the devaluation of the EGP leads to a higher return on foreign investment.
Backstory
Egypt entered into negotiations with the IMF to receive a loan to help support the economy. The Minister of Finance said the deal will be worth less than $15 billion. The IMF has also demanded Egypt make structural changes to qualify for this loan.
EGX records highest daily increase since 2020: Here’s Why ✅
