Egyptian stock market recovers on Tuesday

Egypt’s stock market recovered on Tuesday after a series of losses over the week. The main index EGX-30 rose 2.61%, stabilising at 6827.86 points.

The EGX-100, EGX-70 and EGX-20 have increased by 1.21%, 1.61% and 2.71% respectively.

Head of the Egyptian Association for Finance and Investment Studies Ahmed Fouad said that the recovery is normal and expected to make up the losses.

Earlier this week, the Egyptian Stock Exchange fell to the lowest level in two years, as the EGX-30 registered 6784.09 points. On Sunday, the stock exchange reported EGP 15bn in losses.

However, the stock market losses are considered a decrease in the value of listed stocks, not an actual loss, unless investors sell the stocks.

According to Fouad, the decline occurred due to three reasons – the freezing of assets of two leading Egyptian businessmen, a crisis in the availability of the US dollar, and a huge gap in the budget deficit.