Khaberni - Arab investors increased their purchases of local debt instruments in Egypt, especially government bonds, prior to the start of the Eid al-Fitr holiday.
According to secondary market data, Arab purchases of bonds amounted to about 101.8 billion Egyptian pounds, equivalent to about 1.9 billion dollars, while their transactions on treasury bills recorded a net sale of 10.1 million pounds, or about 192 thousand dollars.
Foreign investors moved to selling bonds worth 1.3 billion pounds (about 26.7 million dollars), against buying in bills valued at 3.1 billion pounds, equivalent to 60.6 million dollars.
Egypt has succeeded in attracting foreign investments in local debt instruments, due to the high returns on bonds and the decreasing inflation rates. However, global geopolitical tensions have led some investors to scale down their investments and partially exit, with exits from the Egyptian market since the beginning of these tensions up to the current week exceeding 6 billion dollars.
The recent activity of Arab investors reflects their trend towards capitalizing on the high returns on bonds, while foreign investors remain more cautious amidst global geopolitical risks, making the Egyptian market in need of external stability to ensure the sustainability of investment flows.
