The EGX 30 key drivers displayed a severely weak performance over the past year. This could be traced to the dual influence of a global rout in equity prices, driven mainly by losses incurred by investors as a result of record-low oil prices and weak global growth expectations, especially in China, in addition to market dynamics specific to the Egyptian economy.
Locally, the Egyptian stock exchange experienced significant headwinds during the past year, mainly from decreasing foreign direct investments in the Egyptian equity market and a Central Bank policy that hampers capital flows in and out of the economy.
In the real estate sector in particular, the overall reaction to the devaluation has been positive, although not all forms of real estate investment stand to benefit equally. In fact, according to Jones Lang Lasalle’s (JLL) “Cairo Real Estate Market Overview” for Q1, 2016, hospitality and residential segments are expected to have the most upside potential. Meanwhile, office and retail sectors may not adjust as smoothly as tenants may experience difficulties in meeting dollar-denominated rental payments.
Click the following link for the full report: EGX 30 Index Performance Analysis 2016