On December 12, 2024, Egypt’s stock market (EGX) concluded the trading week on a positive note, with all major indices closing in the green. The day marked a significant uptrend across the board, reflecting investor confidence amidst a global backdrop of economic uncertainties.
Leading the charge was the EGX30, the main index, which experienced a modest rise of 0.18%, closing at 30,795.09 points. This performance underscores the resilience of Egypt’s blue-chip stocks in navigating market fluctuations.
The Shariah-compliant index, EGX33, saw a more pronounced increase of 0.36%, settling at 3,183.67 points. This indicates a growing interest in Shariah-compliant investments, aligning with a broader trend of ethical investing.
Small and medium enterprises, represented by the EGX70 index, posted a robust growth of 0.64%, reaching 8,575.03 points. This surge highlights the dynamic nature of SMEs and their pivotal role in Egypt’s economic fabric.
The EGX100 index, encompassing a broad spectrum of market categories, rose by 0.49% to end at 11,735.07 points. The overall market capitalization reached an impressive 2.26 trillion Egyptian pounds, signaling strong investor engagement.
In terms of trading dynamics, foreign investors, both Arab and non-Arab, were net buyers, with net purchases amounting to 42.2 billion and 4.7 billion Egyptian pounds, respectively. Local investors, on the other hand, were net sellers, offloading stocks worth 46.9 billion Egyptian pounds. This pattern of foreign capital inflow suggests a favorable perception of Egypt’s economic prospects among international investors.
Market Movers: The Ups and Downs
Among the day’s top gainers, Tanmiya for Real Estate Investment (TANM.CA) led with an impressive 11.40% increase, closing at 3.810 Egyptian pounds per share. This surge reflects a bullish sentiment towards the real estate sector, possibly driven by expectations of future growth and development projects.
Cairo Educational Services (CAED.CA) also saw significant gains, climbing 10.70% to trade at 30.720 Egyptian pounds per share. This rise suggests increasing investor interest in the education sector, potentially due to ongoing educational reforms and investments in the country.
M.B Engineering (MBEN.CA) marked a 10.62% jump, indicating strong performance and investor confidence in the engineering and technology sector, which continues to be a key driver of economic growth.
Conversely, East Delta Flour Mills (EDFM.CA) faced a downturn, with shares falling by 9.01% to close at 244.460 Egyptian pounds. Similarly, North Cairo Mills (MILS.CA) and United Housing & Development (UNIT.CA) experienced declines, reflecting sector-specific challenges and market volatility.
Expert Insights and Future Outlook
Financial analysts attribute the day’s positive market performance to a combination of stable macroeconomic policies and investor optimism about Egypt’s long-term growth trajectory. According to a report by Fitch Solutions, Egypt’s GDP is expected to grow by an average of 4.7% annually over the next five years, bolstered by investments in infrastructure and energy projects.
Dr. Youssef Ibrahim, an economist at the Cairo Economic Forum, commented, “The EGX’s performance today is a testament to the underlying strength of Egypt’s economy. While challenges remain, the outlook is positive, particularly with continued foreign investment and government reforms aimed at enhancing economic resilience.”
As Egypt continues to attract international capital and strengthen its economic foundations, the EGX is poised for further growth, reinforcing its status as a vital player in the regional financial landscape.
