The total value traded in the Egyptian Stock Market (EGX) in the fourth quarter (Q4) of fiscal year (FY) 2014/2015 has recorded EGP 48.7bn. The total volume traded reached 8,912m securities executed over 1.16m transactions in this quarter.
The EGX said in its quarterly statement issued Tuesday that stocks trading accounted for 65.73% of the total value traded of the main market, while the remaining 34.27% were captured by bonds over the quarter.
Egyptians controlled 80.94% of the value traded during the quarter, while non-Arab foreign investors accounted for 13.17% and Arab investor captured 5.89%. Non-Arab foreign investors were net buyers, with a net equity of EGP 660.79m and Arab investors were net sellers, with a net equity of EGP 246.5m, according to the statement.
Regarding the market indices performance, the EGX-30 index closed at 8,372 points, recording a decrease of 8.36%; the EGX-70 index marked a 14.09% loss at 445 points; and the EGX-100 declined by 9.93% at 942 points.
The Egyptian bourse witnessed an improvement in activities over FY 2014/2015. Over 20 companies were listed on the EGX with over EGP 5bn in capital since May 2014, according to EGX Chairman Mohamed Omran. The surge was followed by the first initial public offering (IPO) held after the 25 January Revolution by leading cement producer Arabian Cement.
Ordinary shares of Egyptian snacks company Edita Food Industries SAE started trading in early April. In parallel, trading of global depositary receipts (GDRs), each representing five ordinary shares, also began on the London Stock Exchange (LSE).
Another leading company announcing its stock market listing this year was the Egyptian arm of UAE-based real estate developer Emaar Misr. The IPO will encompass an offering of up to 600m shares, representing 13% of the company’s post-offer share capital, the company noted.
In early March, the EGX also approved Orascom Construction’s (OC) EGX listings, with capital amounting to $105m. In November 2014, the company announced that it will obtain an IPO in 2015.
Leading automotive assembler and distributor Ghabbour Auto (GB Auto) also submitted a request to the EGX this year. This was to increase the company’s capital by approximately EGP 960m, through issuing 960m shares at a value of EGP 1 per share.
In November 2014, the Sixth of October Development and Investment Company (SODIC) announced it had raised EGP 993m through a capital increase offered to existing shareholders, from EGP 362.7m to EGP 1.35bn.
Real estate firm Mountain View is also considering listing shares on EGX, although not before 2017, according to CEO Ayman Soliman.
In 2005, only three companies had IPOs, amounting to EGP 7.6bn. That number surged to 22 companies in 2006; however, the offerings amounted to EGP 3.7bn. In 2007, 20 companies were listed, totalling EGP 21.4bn, whilst in 2008, the amount of offerings for 24 companies was EGP 6.4bn.
Between 2009 and 2011, 30 companies were listed on the stock market with a total value of EGP 5.7bn, with 2011 contributing eight companies and EGP 0.5bn to those figures.
Listings surged in 2012 to total 11 companies and a value of EGP 2.5bn, only to drop in 2013, with nine companies entering the stock market with a total value of EGP 0.2bn.