By Samir Al Khoury,
The Egyptian main index, EGX30, continues its upward trend for the 13th consecutive day, reaching 28,364 points yesterday—its highest level since April 22, 2024. This represents a 17% increase from the low of 24,192 points on May 1, 2024, to the close of yesterday’s session. Despite the sharp fluctuations in the Egyptian Stock Exchange since the beginning of the year, and the EGX30 index reaching an all-time high of 34,501 points on March 11, 2024, before a significant decline, the EGX30 index is still up by about 14% year-to-date.
Egypt has recently seen cash flows in hard currency from various external sources, including the Emirati company ADQ, the International Monetary Fund, the World Bank, and the European Union.
The Purchasing Managers’ Index (PMI) for the non-oil private sector in Egypt recorded 49.9 points in June, higher than the previous reading of 49.6 and the highest level in three years.
In addition, Egypt’s foreign exchange reserves increased to approximately $46.13 billion, up from $41.06 billion previously.
The Egyptian pound has also strengthened against the US dollar sovereign bonds due in 2049, following the formation of a new Egyptian government composed of economic experts and bankers.
Noteworthily, Egypt has suffered high inflation for over two years, recording a rate of 28.10% in May 2024, lower than the previous reading of 31.80%, and continues to experience a scarcity of US dollars.
Technical indicators suggest that the EGX30 index may continue its upward trend for several reasons:
First: A golden crossover occurred between the 20-day moving average at approximately 26,991 points and the 50-day moving average at approximately 26,877 points, indicating an upward trend for the EGX30 index.
Second: The Relative Strength Index (RSI) records 67 points, which indicates positive momentum for the EGX30 index.
Third: The MACD indicator (in blue) exceeds the signal line (in orange), which gives positive momentum to the EGX30 indicator.
Please note that this analysis is provided for informational purposes only and should not be considered as investment advice.
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