Egypt’s stock market (EGX) concluded last week the trading session on a high note, demonstrating resilience in a region often characterized by economic unpredictability. The main index, EGX30, climbed by 0.73% to close at 29,605.12 points, reflecting investor optimism in large-cap stocks. Meanwhile, the Sharia-compliant EGX33 surged by 1.04% to 3,120.06 points, indicating a growing interest in ethical investing.
The EGX70, which tracks small and medium enterprises, posted a robust gain of 1.33%, pushing the index to 8,229.69 points. The broader EGX100 index also rose by 1.14%, reaching 11,326.45 points, marking a positive sentiment across various sectors.
The market capitalization swelled to an impressive 2.2 trillion Egyptian pounds, underscoring the market’s strength. Arab investors and non-Arab foreigners were net buyers, contributing 1.21 billion and 5.78 billion Egyptian pounds, respectively. Conversely, Egyptian investors were net sellers, offloading shares worth approximately 6.99 billion pounds. This trend suggests a strategic shift among local investors, perhaps reallocating funds or safeguarding profits.
Among the day’s top gainers, the Egyptian Company for Construction Development-Lift Slab (EDBM.CA) surged by 19.90%, closing at 0.500 Egyptian pounds per share. Similarly, Egyptian Modern Education Systems (MOED.CA) saw a rise of 15.63%, trading at 0.407 pounds per share. The International Company for Fertilizers & Chemicals (ICFC.CA) followed suit, appreciating by 13.72% to 11.770 pounds per share.
In contrast, El Wadi for International and Investment Development (ELWA.CA) experienced a decline of 4.98%, closing at 0.858 pounds per share, alongside Rowad Tourism (Al Rowad) (ROTO.CA) and Cairo Educational Services (CAED.CA), which fell by 4.98% and 4.46%, respectively.
Financial analyst Sarah Nabil from the Cairo Financial Group commented, “The consistent growth in EGX indices signifies robust investor confidence, possibly driven by recent reforms and favorable fiscal policies. However, the selling trend among Egyptians could be attributed to concerns over the domestic inflation rate, which remains a point of contention.”
According to the latest data from the Central Bank of Egypt, inflation has shown signs of easing, albeit remaining above the target range. Dr. Ahmed El Saeed, an economist at the Economic Research Institute, noted, “With geopolitical tensions and shifts in global markets, it’s crucial for Egypt to maintain its reform momentum to attract sustained foreign investment.”
The EGX’s performance serves as a barometer for the Egyptian economy, with market participants closely monitoring upcoming fiscal policies and regional developments. As Egypt positions itself as a key player in the Middle East’s economic landscape, the focus remains on strategic investments and fostering an environment conducive to growth and innovation.
Exclusive insights from industry insiders suggest potential mergers and acquisitions in the hospitality sector, driven by increased tourism and international interest in Egypt’s burgeoning market. With such dynamics at play, the EGX is poised to be a focal point of regional investment strategies moving forward.
