Egypt’s stock exchange closed Thursday on a cautiously optimistic note, buoyed by strong performances in small- and mid-cap stocks even as Shariah-compliant shares took a minor dip. The market saw heightened activity from foreign investors, pushing the total market capitalization to an impressive EGP 2.2 trillion
The benchmark EGX30 index edged up 0.10% to settle at 31,062.95 points, marking a relatively flat close amid sectoral divergences. The EGX70, which tracks smaller and medium-sized enterprises, outperformed with a 0.76% gain to 9,036.88 points, while the broader EGX100 climbed 0.44% to 12,367.83 points.
In contrast, the EGX33 Shariah-compliant index inched down 0.03%, closing at 3,224.85 points, as certain religiously compliant sectors underperformed the broader market.
Market dynamics were significantly shaped by investor demographics. Arab and other non-Arab foreign investors were net buyers, purchasing equities worth EGP 902.7 million and EGP 2.32 billion, respectively, according to trading data released by the EGX. Meanwhile, Egyptian investors offloaded shares worth EGP 3.22 billion, positioning them as the session’s net sellers.
“Foreign interest is clearly returning, especially in the wake of Egypt’s improving macroeconomic signals and ongoing IMF-backed structural reforms,” said Karim El-Dessouky, senior market analyst at Al-Ahly Financial Brokerage. “Local investors, particularly retail, appear to be booking profits after recent rallies in key sectors.”
Top Gainers: Tourism, Cement, and Housing Stocks Rally
The day’s standout performers were from sectors tied to Egypt’s domestic recovery and real asset growth. Notably:
- Egyptian for Tourism Resorts soared 19.97%, closing at EGP 7.57 per share, following recent news about rising foreign tourism arrivals and government plans to privatize more real estate assets.
- Misr Beni Suef Cement gained 7.63%, ending at EGP 84.47 a share amid speculation of upcoming infrastructure contracts linked to Egypt’s New Administrative Capital project.
- El Kahera Housing rose 7.44%, closing at EGP 2.31, with analysts citing increased housing demand in suburban Cairo as a growth catalyst.
Top Losers: Real Estate and Healthcare Stocks Under Pressure
On the flip side, a few sectors faced headwinds:
- El Obour Real Estate Investment declined 4.67%, closing at EGP 13.06, as profit-taking followed a sharp recent rally.
- Alexandria National Co. for Financial Investment fell 3.60% to EGP 23.00, with weak Q1 earnings expected to weigh on sentiment.
- Alexandria New Medical Centre dropped 3.58%, closing at EGP 21.81, amid broader volatility in the healthcare sector.
While local fundamentals continue to improve, market analysts caution against overexuberance.
“Global market volatility, rising U.S. interest rates, and geopolitical tensions could temper gains in the near term,” noted Rania Mahmoud, head of research at CI Capital. “However, strong foreign inflows, coupled with anticipated IPOs from state-owned entities, are likely to maintain upward momentum through Q2.”
Analysts also point to the upcoming earnings season as a key catalyst for market direction, especially in banking, construction, and consumer goods sectors.
In exclusive remarks to this outlet, a senior EGX official confirmed that two public sector companies are preparing for partial listings in Q2, aimed at boosting market liquidity and attracting Gulf investments. Names of the companies were not disclosed, but one is expected to be from the energy sector.
“These listings are part of the government’s broader privatization plan and are designed to build investor confidence,” the official noted, requesting anonymity due to the sensitivity of the discussions. While Egypt’s stock market remains on a mixed footing, the renewed appetite from foreign investors and a resilient small-cap rally suggest cautious optimism ahead. Eyes are now turning to upcoming earnings, new listings, and fiscal reforms that could define EGX’s trajectory in 2025.
