In a week marked by fluctuating dynamics and strategic investments, Egypt’s stock exchange (EGX) wrapped up on Thursday, February 20, 2025, with a positive close across multiple indices. This resilience underscores investor confidence amidst the complex economic landscape, drawing attention from regional and global market analysts.
Market Overview: Indicators in the Green
The EGX30, Egypt’s benchmark index, inched up by 0.13%, closing at 30,914.72 points. This slight uptick is a testament to the robust performance of select heavyweight stocks, providing a buffer against broader market volatility. Meanwhile, the EGX33 Shariah index saw a notable increase of 0.91%, finishing at 3,232.94 points, reflecting heightened investor interest in Shariah-compliant equities.
Small and medium enterprises (SMEs) also witnessed buoyancy, with the EGX70 climbing by 0.32% to 8,614.57 points. Similarly, the EGX100 rose by 0.43%, ending the week at 11,875.52 points. The aggregate market capitalization reached a substantial 2.27 trillion Egyptian pounds, signaling strong market fundamentals.
Investor Behavior: Foreign Confidence Surges
Foreign investors, both Arab and non-Arab, exhibited strong buying activities, with net purchases totaling over 1 billion and 1.7 billion Egyptian pounds, respectively. This influx of foreign capital emphasizes Egypt’s attractiveness as a lucrative market amidst regional uncertainties. In contrast, Egyptian investors adopted a more cautious stance, with net sales amounting to approximately 2.74 billion Egyptian pounds, suggesting possible profit-taking or reallocation strategies.
Winners and Losers: Sectoral Performance Highlights
The week’s top gainers included the International Company for Fertilizers & Chemicals, whose shares soared by 11.16% to 13.45 Egyptian pounds each. Cairo Pharmaceuticals also performed impressively, with shares climbing 10.78% to 128.13 Egyptian pounds. Arab Valves Company saw an 8.63% jump, reaching 5.79 Egyptian pounds per share.
Conversely, Rowad Tourism (Al Rowad) experienced a significant drop of 4.99%, closing at 27.40 Egyptian pounds. The Egyptian Company for Construction Development-Lift Slab and Egyptian Iron & Steel also faced declines, with shares sliding by 4.82% and 4.65%, respectively.
Expert Insights: Navigating the Path Ahead
Financial experts are closely monitoring these trends, with many pointing to geopolitical factors and domestic policy adjustments as key influences on market performance. Dr. Yasmine El-Melegy, a financial analyst at Cairo University, noted, “The resilience shown by the EGX reflects strategic investor confidence, yet the market remains sensitive to macroeconomic shifts and regional developments.”
The EGX’s positive closure amid mixed sectoral performances signals a cautiously optimistic outlook for Egypt’s financial markets. As the country navigates its economic challenges and opportunities, the stock exchange emerges as a barometer for investor sentiment and future economic growth.
