In a remarkable turn of events, the Egyptian Exchange (EGX) concluded the trading week on a robust upswing, with key indices posting significant gains, much to the delight of investors and market analysts alike.
The primary EGX30 index showcased a stellar performance, surging by 2.43% to close at 30,810.7 points. This bullish sentiment was mirrored across the board as the EGX33 Shariah-compliant index nudged up by 1.87% to settle at 3,185.29 points. Meanwhile, the EGX70 index, which is heavily watched for small and mid-cap stock activities, leaped by 2.70%, wrapping up the session at 8,777.71 points. The broader EGX100 index didn’t lag behind, climbing 2.57% to close at 12,091.36 points, pushing the total market capitalization to an impressive 2.18 trillion Egyptian pounds.
A notable trend observed was the aggressive buying by non-Arab foreign investors, who were net buyers with a total purchase value reaching 6.97 billion pounds. On the contrary, local investors and their Arab counterparts opted to sell, recording outflows of 6.84 billion and 126.3 million pounds, respectively. Market experts suggest these dynamics highlight a potential shift in investment patterns, driven by international confidence in Egypt’s economic resilience.
On the winning side, Arab Developers Holding – Rights Issue 1 led the pack, spiking by 16.47% to close at 0.099 Egyptian pounds per share. Al Tawfeek Leasing Company – A.T.LEASE -3 followed closely, with shares climbing 16.28% to 1.000 Egyptian pounds each. Arab Ceramic Co. – Ceramica Remas also impressed, posting a 13.51% increase, reaching 1.260 Egyptian pounds a share.
Conversely, Taaleem Management Services faced headwinds, with shares dropping by 5.72% to 10.710 Egyptian pounds. Rowad Tourism (Al Rowad) saw a decline of 4.97%, ending at 27.180 Egyptian pounds, while El Ahram Co. for Printing and Packing decreased by 4.92%, closing at 10.040 Egyptian pounds.
Dr. Fatima El-Masry, an esteemed economist at the Egyptian Institute of Finance, opined, “This week’s upswing is indicative of underlying investor confidence, especially from foreign entities. The fluctuations in local and Arab investor activities may suggest profit-taking or repositioning ahead of anticipated financial policy adjustments.”
With market capitalization reaching new heights, the outlook for the EGX appears promising. Analysts predict that if foreign capital inflows continue, alongside strategic domestic economic reforms, the Egyptian market could witness sustained growth in the coming quarters.
