(Ecofin Agency) - EGX 30, Egyptian bourse’s main benchmark index ended with a 6.7% growth on March 14, 2016. Other indexes knowingly EGX 70 and EGX 100, also increased by 1.5% and 3.5% respectively. Following that trend, market capitalization surged to EGP428 billion (local currency), thus its highest since May 2014.
The performance is subsequent to Central Bank’s decision to devaluate currency, at an exceptional auction of $200 million. An initiative which aims to put an end to disorder characterizing Egypt’s bourse, which is impacted by a significant volume of transactions on black market. The Central Bank also answered to foreign investors’ plea for more flexibility in the management of financial charges.
Though devaluation had a positive effect over Egyptian Exchange, it might take some time before it applies to transactions’ limiting in parallel market. Data collected from commercial banks shows that demand for dollar is still higher than available supply. Official exchange rate now ranges between EGP8.9 (buy) and EGP8.95 (sell) per US dollar, against 7.8 pounds previously.
