Spring 2012

EGYPTIAN STOCK EXCHANGE: Weeks of highs – and lows

KairoThis month marks one year since the Egyptian stock exchange reopened for business. Stefanie Eschenbacher looks at trading activity.

Egypt’s football riots last month evoked memories of the 2010/2011 uprising which led to the resignation of the country’s president, Hosni Mubarak, who had been in power for some 30 years.

 Though Egyptian football fans have a history of clashing, the events show just how volatile the country remains a year since the political unrest. Exchange_table1

 The Egyptian stock exchange, one of the largest in the Middle East and North Africa, has also been struggling with volatility.

While the Egyptian stock exchange has lost a considerable amount over the past two years, performance has picked up since January.

Exchange_table2Trading had been suspended on 27 January, 2011 for more than a month in the wake of anti-government protests. When its benchmark index saw significant falls within a relatively short period of time, the regulator closed the exchange. 

 It eventually reopened on 24 March, 2011, later than originally scheduled. 

Just seconds after the trading activity resumed, however, the exchange was forced to halt trading for 30 minutes because of large falls in some stocks.

Exchange_table3Volatility of the stock market appears to have lessened over the past couple of months.

  According to Thomson Reuters Eikon, in the past 52 weeks the Egyptian stock exchange reached a record high of $5,666.5 on 20 June, 2011 and a record low of $3,578.12 on 28 December, 2011.Exchange_table4  




©2012 funds global

Sponsored Profiles

There’s no doubt that Africa has been seen increasingly as an attractive prospect for inbound investment in recent years, with investors seeing real potential in the continent, particularly in the private equity, infrastructure and real estate asset classes, as it experiences strong economic growth.

Plausible explanations exist for why low-volatility stocks perform better than their high-volatility counterparts.

Aberdeen Asset Management has set up its first Middle East office in the newly established Abu Dhabi Global Market. Andrew Paul, senior executive officer, explains why.

A recent sovereign bond issue from Saudi Arabia underlines the appeal of emerging market investing. What must investors consider when allocating to this asset class? Firas Mallah of BMO Global Asset Management shares his views.

Executive Interviews

INTERVIEW: ‘Financing is the blood of Iran’s economy’

Amid a fresh wave of American sanctions, Romil Patel spoke to Meysam Hamedi, director of financial markets and instruments at Iran’s Securities & Exchange Organization (SEO).

INTERVIEW: Totally mega

In 2016, global consulting firm PWC forecast the emergence of five global ‘megatrends’ in the next two decades. Stephen Anderson, its Middle East clients and markets leader, talks about their...

INTERVIEW: Protecting the investment

Rasmala’s trade finance fund recently passed $100 million in assets. Doug Bitcon, head of credit strategies, explains why he has to be hands-on.

EXECUTIVE INTERVIEW: A natural interest in the topic

Since 2016, Guillermo Ortiz has been a chairman of Latin America’s BTG Pactual. The former central banker of Mexico talks to Nick Fitzpatrick.


Middle East Investor Roundtable 2020: Dimensions of diversification

Investors in the Middle East consider the tools that will be needed to navigate the Covid-19 crisis, the continued appetite for dividend and why it’s all about tech. Chaired by Romil Patel.

South Africa asset management roundtable: Global rebound on ice

Experts discuss the investment implications of the coronavirus pandemic, a delayed rebound in global growth and dealing with South Africa’s energy issues head on. Chaired by Romil Patel in Cape Town.

South African roundtable: Taking the bull by the horns

Our panel discusses Chinese investment in Africa, financial institutions’ contribution to economic sustainability and regulatory concerns. Chaired by Romil Patel in Cape Town.

ROUNDTABLE: Hooked to the global caravan

With the MENA region at a tipping point, our panellists talk about economic diversification, the impact of regulation and the delayed Saudi Aramco listing. Chaired by Romil Patel in Dubai.