Expectations of the Egyptian Stock Exchange, up 75% this year
Posted on 2009-01-05




Experts of economists and analysts in 2009 to witness the remarkable recovery of the Egyptian Stock Exchange by up to 75% after sharp losses suffered by the stock over the past year, which registered the worst market declines in history.

The experts and analysts told the UAE said the Egyptian market has suffered greatly in 2008, many stocks fell to their lowest level in five years, also fell more than 30% of the market shares without nominal value.

Prominently and Adel Abdel-Fattah, chairman of the fruits of Securities The Egyptian Stock Exchange, have all chances of re-boarding the strong and compensate for losses in 2009 with the support of many factors, most notably in The World Bank forecasts the Egyptian economy's ability to maintain good growth rates between 4.5 and 5.5%, which is the biggest indicator of the ability of firms to overcome the crisis.

The decline in corporate profits for the fourth quarter of the year 2008 is to be expected and logical, stock markets have interacted with those expectations already, but levels fell more than expected decline rates of those profits.

And confirmed the ability of the Egyptian stock exchange to reach the level of 8500 points, especially in the second half of the year could see a big price spike on the level of many sectors of the market most notably telecommunications and food.

And expected a decline of the role and activity in housing and real estate in 2009 after taking Hzama over the past three years, to leave it the opportunity for other sectors of the higher growth opportunities.

He also predicted the return of major shareholders, leading to the command of the market trading the stock exchange of a new, referring to the revival of interest in financial analysis and to companies and the retreat of speculation in a state of caution has gripped the markets.

For his part, said Mohamed El Maati, a member of the Arab Association for STA, the Egyptian stock market index to rise again a candidate this year to the level of 8500 points, registering a rise of up to about 75%.

He added that the first target level for the market right now is 6500 points, and may reach the market in stages to a point before the 5200 target to see profit-taking followed by a resumption of the rise again.

The benchmark index was the main Egyptian "Cup 30", which measures the performance of the 30 most active companies traded in the market, fell through in 2008 by 56.4% to 4596.49 points, pointing out that the Egyptian stock exchange by the rise of force during the first weeks of 2009.

He called the need to caution investors and away from speculation and lack of motivation, whether buying or selling, calling for the need to be relegated to great optimism in 2009, was also cautious.