The impact of portfolio investments on the stock market: The case of the Egyptian Stock Exchange

This study aims to examine the determinants of market value in the Egyptian Stock Exchange. Using time series data from 1998 to 2023, the effects of portfolio investments, inflation rate, and real interest rate on market value were analyzed through the ARDL model. The thesis consists of three main sections: theoretical framework, methodology, and empirical findings. The analysis results revealed that portfolio investments have a negative effect on market value, while inflation and real interest rates also negatively influence it. This indicates that hot money flows lead to volatility in emerging markets and weaken investor confidence. In conclusion, the study emphasizes that the market value of the Egyptian Stock Exchange is directly affected by economic indicators and highlights the need for effective economic policies to ensure financial stability.