Egypt's FRA announces decline in capital market activities in H1

(MENAFN) In its latest monthly report, Egypt’s Financial Regulatory Authority (FRA) has highlighted a notable decrease in capital market activities during the first half of 2024. The report reveals a substantial drop in several key metrics, indicating a slowdown in the country’s financial market.

The issued share capital in May 2024 fell sharply to 24,763.1 million Egyptian pounds, a significant reduction from 47,857.3 million Egyptian pounds recorded in May 2023. This decline represents a 48.3 percent decrease year-on-year. Conversely, the value of securities assets experienced a remarkable increase, rising to 2,223.0 million Egyptian pounds from 8,057.2 million Egyptian pounds, marking a dramatic 262.4 percent rise.

The total value of financial market issuances also saw a steep decline. In May, the total issuances amounted to 122.3 billion Egyptian pounds, down from 261.2 billion Egyptian pounds previously, reflecting a 113.6 percent decrease. Additionally, the total number of stock issuances decreased from 1,373 to 1,176, representing a 16.8 percent drop. However, there was a notable increase in the number of issuances for securities other than stocks, which rose from 9 to 13, marking a 44.4 percent increase. Overall, the total number of market issuances reached 1,189, compared to 1,382 in the previous period.

These trends point to a significant shift in Egypt’s capital market activities, with reduced stock issuance activity contrasting with growth in other securities. The FRA’s report underscores the evolving dynamics within the financial market and suggests a period of adjustment for investors and market participants.

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