Egypt’s stock market this year 2018 will lead investment opportunities.

In Egypt its stock market is seen in 2018 as a great investment opportunity, given that it has interest rates that all suggest that they will have a downward trend, according to investors surveyed by Daily News Egypt.

This survey included investors and market analysts, and business officials.

The majority of the participants in the survey chose the health, consumer and banking resources as a maximum for 2018.

Investors are also positive about companies that gain contracts in large infrastructure projects and say that consumer reserves are recovering from the collapse of the 2016 currency devaluation.

Egypt’s main stock gauge advanced more than any other in the Middle East in 2017 as the government moves forward with structural reforms, which attracted foreign investors to its debt and equity markets.

Positive sentiment towards equities will continue this year as many stocks trade at attractive valuations, while conditions in the Egyptian economy are supportive.
Khaled Darwish, money manager at CI Capital Asset Management, expects pharmaceutical and healthcare stocks to outperform most of Egypt’s stocks in 2018, with the government introducing a new healthcare act.

“These stocks have a defensive nature. For example, stocks in this sector didn’t suffer as much as others during the 2011 uprising that ousted President Hosni Mubarak,” he said.

The EGX30, measured in local currency, fell 49% that year.

Meanwhile, Radwa El-Swaify, head of research at Pharos, has chosen different stocks from many sectors as Pharos’ top picks for 2018.

Publication: January 22, 2018

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