(MENAFN- Daily News Egypt)
Egypt's economic recovery has been demonstrated by its EGX30 records according to a Dcode Economic and Financial Consulting (Dcode EFC) report, released in this month.
The report specified that measures were taken by the Egyptian Financial Supervisory authority (EFSA) and EGX that helped in providing simpler listings rules.
The measures included the release of rules for "governing block trading" as well as the completion of regulations concerning the listing and trade of "Exchange Trade Funds (ETFs)" on EGX.
The report has been featured on the official website "Egypt the Future", created to promote Egypt's Economic Summit, to be held in Sharm El-Sheikh in March.
Head of Dcode EFC Mohamed Farid told Daily News Egypt: "Dcode made an agreement with the organisers of the Summit to provide them with sequential economic reports that reflect the reality of the economic situation in Egypt, as a move designed to broadcast positive messages about the market to the local and international communities' before the commencement of the summit."
A number of sector indices in 2014 have witnessed better results, whilst some saw a negative performance compared to 2013, the report added.
The strongest ones include the healthcare and pharmaceuticals and the real estate sectors. The former registered yearly returns of 74% in 2014 unlike in 2013 which recorded only 7%, with the latter's index registering in 2013 at 26%, only to jump to 61% in 2014.
Other indices that performed positively include the banks and personal & household products sectors.
Negative indices returns of 11% were witnessed in 2014 in the sectors of food and beverage as well as the financial services "excluding banks", the report noted. Food and beverages in 2013 was the "best performing" index with astounding results of 78%, where in 2014 it became the "worst performing" after this decline, the report mentioned.
Meanwhile, the Egyptian Stock Exchange (EGX) was named Africa's most innovative stock exchange in 2014 by Africa Investor (AI), the report highlighted.
It further illustrated that Egypt's main stock market index, the EGX30, registered affirmative "gains of 51%, 24% and 32% in 2012, 2013 and 2014 respectively".
Asserting the point of Egypt's economical healing, the report noted that five acquisition deals worth EGP 434.8m were convened in 2014, with five IPOs worth EGP 856m launched the same year.
Dcode reflected in another February report on the recent measures of devaluating the Egyptian pound against the US dollar.
The report shed light on the devaluation as a positive move made by the Central Bank of Egypt (CBE) to attract investors. The report said it "has been generally welcomed by the business community as it eases speculative pressure on the EGP, boosts the competitiveness of Egyptian exports in both goods and services (tourism in particular) and encourages investors and international financial institutions to consider increasing their investments in Egypt".
A progressive devaluation of the pound has been witnessed starting from 18 January 2015, as the CBE's standard auctions rate started by rising to EGP 7.19. This compares to an EGP 7.14 rate which lasted over six months before January.
It then kept rising until it reached EGP 7.53 in February 2 and before stabilising.
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