Capital Markets

Egypt has a vibrant capital market, with 212 listed companies on the Egyptian Exchange, alongside a primary and secondary bond market with 60 listed bonds, and a dedicated small-cap market for small and medium-sized enterprises, the Nilex, with 20 listings. Four indices track the performance of the domestic market, but the political unrest of 2011 led to declines in all of them by the end of the year of between 42% and 49%. The real estate and commodity sectors were hit particularly hard, as was tourism, but given the positive long-term outlook for the market, valuations became increasingly attractive, and dividends yields were up to three times that of the Middle East and North Africa average. Since the start of 2012, the performance has been far more robust, with a 27% rise in January 2012 – the largest gain in seven years. This chapter contains an interview with Mohammed Omran, Executive Chairman, Egyptian Exchange, as well as a viewpoint from Hussein Choucri, Chairman and Managing Director, HC Securities & Investment. Furthermore, the chapter provides individual stock analyses and data on a cross-section of locally listed companies, courtesy of HC Securities & Investment.