The Egyptian Exchange advanced on Monday, July 13, as foreign investors returned to net buying and the benchmark EGX30 recovered from the previous session’s marginal decline. Gains extended across most principal indices, although the lower-volatility index edged down, indicating that the advance was broad but not uniform.
The EGX30 rose 0.67 percent to 52,608.28 points, while the EGX33 Shariah Index gained 0.16 percent to 5,888.94 points. The EGX70 Equal Weight Index added 0.47 percent to 16,563.19 points, and the broader EGX100 Equal Weight Index advanced 0.36 per cent to 22,347.31 points.
The EGX35-LV, which tracks shares with relatively lower price volatility, was the only principal equity index to close lower, declining 0.10 per cent to 6,190.77 points. The contrasting performance suggested that investors favoured a wider range of large-, medium- and small-cap stocks rather than concentrating solely on defensive, lower-volatility shares.
Market capitalization increased by roughly EGP14.3bn to EGP 3.834 tn, extending the gain recorded in the previous session. The EGX30 closed about 352 points above Sunday’s level, although it remained below the 53,000-point threshold reached earlier in July.
Foreign Institutions Support the Advance
Foreign investors recorded net equity purchases of EGP119.19mn, of which approximately EGP115.08mn came from institutions and EGP4.11mn from individual investors.
Egyptian investors were net sellers by EGP98.05mn. Domestic institutions recorded net sales of EGP 189.39mn, partly offset by EGP91.34mn of net purchases from Egyptian individuals. Arab investors registered net sales of EGP 21.14 mn, as individual selling outweighed institutional buying.
The composition of the flows is significant. Foreign institutional purchases accounted for most of the net foreign inflow, providing firmer evidence of professional portfolio participation than would a rally driven primarily by retail trading.
Foreign investors nevertheless represented only 4.71 per cent of total dealings, compared with 91.45 per cent for Egyptian investors and 3.84 percent for Arab investors. The figures show that domestic participants continued to dominate overall activity even as foreign net buying helped support the index.
Turnover and Breadth Confirm Wider Participation
Equity turnover reached approximately EGP9.84bn, with about 3.3bn shares changing hands through 208,110 transactions across 220 companies.
Market breadth was positive: 115 shares advanced, 86 declined, and 20 closed unchanged. Advancing stocks therefore outnumbered decliners by about 1.3 to one, supporting the conclusion that Monday’s gain was not confined to a small number of heavyweight constituents.
The session also included an employee incentive transaction involving approximately 11.02mn Fawry shares, valued at EGP 206.11mn. This transaction formed part of reported activity but should be distinguished from ordinary open-market demand when assessing underlying liquidity.
Blue Chips Recover as Smaller Companies Continue Higher
Monday’s performance differed from Sunday’s session, when the EGX30 slipped while the EGX70 and EGX100 advanced. The return of the benchmark to positive territory indicated stronger performance among the largest listed companies, while continued gains in the broader indices showed that smaller and medium-sized shares also remained supported.
The EGX30’s 0.67 percent increase exceeded the gains in the EGX70 and EGX100, marking a shift from the previous session’s pronounced small- and mid-cap outperformance. The decline in the EGX35-LV, however, demonstrated that the rally did not lift every market segment equally.
Healthcare and Pharmaceuticals Lead Individual Gains
Healthcare and pharmaceutical shares featured prominently among the strongest performers.
Alexandria New Medical Center rose by the daily limit of 19.99 per cent to EGP 100.66, extending its sharp advance from the previous session. Cairo Pharmaceuticals and Chemical Industries climbed 11.96 per cent to EGP 449.86, while Tycoon Investments Holding gained 9.61 per cent to EGP23.26.
Other notable gainers included Misr Oils and Soap, up 7.17 per cent, and Egypt Gas, which advanced 6.94 per cent.
On the downside, Naeem Real Estate Holding Group fell 4.55 percent to EGP 19.52, Pioneers Properties for Urban Development—PRE Group declined 3.98 percent to EGP8.20, and Rowad Tourism dropped 2.67 percent to EGP43.07.
The concentration of leading gains in selected healthcare and pharmaceutical companies should not be interpreted as evidence that their entire sectors outperformed, as official sector-index data were not available in the sources reviewed.
Inflation and Interest Rates Shape the Valuation Backdrop
The market’s advance followed the Central Bank of Egypt’s July 9 decision to maintain its overnight deposit, lending and main-operation rates at 19 per cent, 20 percent and 19.5 per cent, respectively.
The decision came as annual urban inflation eased to 14.3 per cent in June, from 14.6 percent in May, while annual core inflation remained an important consideration for the central bank. The combination of moderating headline inflation and unchanged policy rates provides equity investors with a clearer near-term policy framework, although real financing costs remain high for leveraged businesses.
For listed companies, the effect is uneven. Banks and cash-rich businesses may benefit from elevated yields, while property developers, industrial companies and consumer-facing businesses remain sensitive to funding costs and household purchasing power. Second-quarter earnings will therefore be important in assessing how pricing power, financing expenses and currency conditions have affected individual sectors.
Outlook
Investors will now focus on whether foreign institutional buying continues after Monday’s EGP119mn inflow and whether the EGX30 can consolidate above 52,600 points after its recent volatility.
Second-quarter earnings will provide the next company-specific test, particularly for banks, property developers, industrial businesses and consumer companies. Inflation data and subsequent Central Bank guidance will remain central to expectations for the timing and scale of any future monetary easing.
Progress on new listings and broader capital-market reforms will also influence the medium-term investment case. In the immediate term, however, Monday’s positive market breadth, active turnover and foreign institutional purchases provide more substantial evidence of participation than the headline index gain alone.
Research resolves the main discrepancy in the supplied figures. Multiple detailed session reports—using equity-market transactions—show that foreign investors were net buyers by EGP119.19mn, while Egyptians and Arabs were net sellers by EGP98.05mn and EGP21.14mn, respectively. The much larger EGP44.8bn/EGP42bn figures are incompatible with the session’s EGP9.84bn equity turnover and appear to reflect a different dataset or a transcription/classification error; they should not be published as equity net flows.
Related news:
Domestic Buying Broadens Market Gains as EGX30 Pauses After Rally
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Central Bank Holds Policy Steady as Egypt’s June Inflation Slips to 14.3%
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