EFG Hermes expects a better performance of the Egyptian bourse in 2020 compared to 2019, driven by the improvement of the country's macroeconomic indicators and the state's keenness to support the private sector as well as the growing competitiveness of the Egyptian market among its emerging counterparts.
In a statement to MENA on Wednesday, head of Research at EFG Hermes Ahmed Shams said that the Egyptian bourse performance during 2020 is projected to witness further improvement backed by the private sector.
The Egyptian bourse will greatly benefit from the initiatives launched by the government and the Central Bank of Egypt (CBE) in support of the industrial, tourism and real estate sectors, Shams added.
The bourse is also expected to benefit from the results of the financial policy carried out in the past period in addition to the monetary easing policy adopted by the CBE.
He expected that the interest rates would be cut by an average of 1.5 to 2 percent in 2020, a move that would be positively reflected on the bourse’s performance.
The Egyptian economy is forecast to grow by 5.8 percent in 2020, he said, and the tourism sector in expected to keep improving with revenues exceeding $15 billion in the coming fiscal year, compared to the $12.6 billion achieved in the past fiscal year.
He also expected the cash reserve in 2020 to stand at levels ranging from $45 billion to $46 billion, hitting $50 billion after 2022.