In a week marked by volatile trading, Egypt’s stock market (EGX) closed in negative territory on Thursday, December 26. The benchmark EGX30 index dipped by 0.16%, finishing at 29,957.97 points. Similarly, the Shariah-compliant EGX33 index saw a decrease of 0.12%, landing at 3,077.31 points. The small and medium enterprises index, EGX70, dropped by 0.11% to 8,201.12 points, while the broader EGX100 index slightly declined by 0.06% to settle at 11,269.09 points. The total market capitalization reached approximately 2.19 trillion Egyptian pounds.
The trading week revealed a pattern of net selling by both Arab and non-Arab foreign investors, who offloaded stocks worth 278.7 million and 994.7 million Egyptian pounds, respectively. Conversely, Egyptian investors remained optimistic, acting as net buyers with acquisitions totaling 1.27 billion Egyptian pounds, according to data from the Egyptian Exchange.
Financial analyst Dr. Ahmed El-Sayed commented to Middle East Observer on the current market trends, saying, “The sell-off by foreign investors could be attributed to global market uncertainties and regional geopolitical factors. However, domestic investors’ resilience and confidence in the local economy have cushioned the market to some extent.”
Top Gainers: Real Estate and Investment Sectors Shine
Mena Touristic & Real Estate Investment (MENA.CA) led the risers, with its shares appreciating by 7.59% to close at 4.250 Egyptian pounds. Grand Investment Capital (GRCA.CA) followed closely, witnessing a 7.01% increase to 10.690 Egyptian pounds a share. Alexandria Flour Mills (AFMC.CA) also performed well, with a 5.91% rise, closing at 26.710 Egyptian pounds per share.
Lagging Stocks: Pharmaceuticals and Land Reclamation Hit
On the downside, Minapharm Pharmaceuticals (MIPH.CA) saw a drop of 5.04%, closing at 171.430 Egyptian pounds per share. El Arabia for Land Reclamation (EALR.CA) shares declined by 4.85%, ending at 50.780 Egyptian pounds. El Ahram Co. for Printing and Packing (EPPK.CA) also experienced a downturn, with its shares falling by 4.54% to 9.470 Egyptian pounds.
Exclusive insights from financial markets strategist Leila Mahmoud suggest that Egypt’s economic reforms and potential policy shifts might play pivotal roles in shaping investor sentiment in the coming months. “While current fluctuations are partly driven by external pressures, Egypt’s ongoing efforts to stabilize its financial and economic sectors could help in attracting more sustainable investment flows,” she noted.
