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Non - Banking Financial
Markets

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The req. of Tech. structure & info. security systems for hosting providers
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Capital Market greatly contributes to the national economy through its role in encouraging the transfer of accumulated savings into investments in new projects accomplishing economic and social development. The capital market, with its high technologies and tight legislations has been able to provide an attractive investment climate.

The capital market in Egypt maintained its performance regarding the value of securities issued in the primary market, amounting to more than 162 billion pounds during 2019. Taking into account issuances of nominal value and capital reduction issuances that reached more than 220 billion pounds compared to 214.8 billion pounds last year, with a growth rate of 2.6%. The number of new securitization bonds issuances reached 18 issuances, including nearly 22.1 billion pounds in 2019, compared to 7 issuances worth 5.3 billion pounds in 2018, with a growth rate of about 317%. While the number of corporate bond issuances for 2019 was approximately 0.4 billion pounds, for a total of 22.5 billion pounds for both securitization and corporate bonds. This is considered as an important indicator that emphasized the activation of this mechanism and companies using it as one of financing sources through the Egyptian Capital Market and Stock Exchange, as this value represented four times the highest value of securitization in the history of the Egyptian capital market.

The Egyptian Stock Exchange indices recorded an increase during 2019, which reached about 7.1%, where the main index EGX30 scored about 13,962 points (December 2019 closure). Meanwhile, the increase rate of the EGX30 index reached about 19.6% when it evaluated in the US dollar. As for MSCI, the Egyptian Stock Exchange ranked the third, with a 39% increase, after Russia and Greece.

Market capitalization of listed shares in the main market decreased by 5.5% to reach 708.3 billion pounds in 2019 compared to 749.7 billion pounds in the previous year, due to delisting of 12 companies from 2018 until December 2019. The total value of trading during 2019 increased by 14.3%, compared to the corresponding period of last year, where total trading value during 2019 reached about 409.8 billion pounds, compared to 358.5 billion pounds in 2018.

It is worth noting that foreign transactions amounted to about 32.94% of total transactions in the Stock Exchange during 2019, and the share of Egyptian investors was 67.06% (after excluding deals and bonds market).

On the other hand, number of funds operating in Egypt by the end of 2019 reached about 110 investment funds, including one real estate investment trust and one indicator fund. The number of new investment funds licensed during 2019 was four investment funds, including a cash fund established by Al Baraka Bank of Egypt and three funds established in the form of joint stock company in accordance with the Capital Law No. 95/1992 (including a charitable fund covered by its subscription).

The net assets of investment funds amounted to approximately 63.4 billion Egyptian pounds by the end of 2019 (including the value of private equity funds). Moreover, funds established by banks represent the largest proportion of total funds, out of 110 funds. There are 89 funds established by Egyptian banks, 3 funds established from Insurance companies, 18 investment funds in the form of a joint stock company divided into 11 open funds and 7 closed funds that included two private ownership funds with a net asset value approximately 600 million Egyptian pounds by the end of 2019. Private equity funds invest their funds in listed and unlisted securities. In addition, this type of funds may engage into venture capital activity. This is an important tool to provide finance for high risk and high value-added projects.