By Menna Zaki
The Egyptian stock exchange (EGX) registered an increase of 1.13% on Monday, with the benchmark EGX 30 index rising to 8,162.20, up from 8,070.76 on Sunday.
The gains followed the approval of the fiscal year (FY) 2014/2015 state budget by President Abdel Fattah Al-Sisi, with the state’s total expenditure set at EGP 789bn. The Ministry of Finance’s official statement on Monday said total revenue would amount to EGP 549bn, pushing the budget deficit down to 10% of the GDP.
The EGX-70, which includes small and medium sized companies, also witnessed a marginal increase by 0.98%, recording 591.14 points compared to Sunday where it registered 585.43 points.
The EGX- 20 capped indices hiked as well, up 1.17% to 9,869.67 points from 9,755 points recorded on Sunday. The EGX -100 witnessed an 0.82% increase, registering 1,034.26 points up from 1,025.83 Sunday.
According to Mohsen Adel, a member of EGX’s board of directors, the increase can be attributed to the increase of the purchasing power of Arab investors and a new clear vision about the budget deficit.
He added the stock market will continue its climb alongside events that stimulate the buying process and the increase of trading volume in the coming period.