The Egyptian Exchange (EGX) closed last week in negative territory, with its major indices posting modest declines.
The benchmark EGX30 index slipped 0.78% to settle at 35,576.42 points, while the EGX33 Shariah-compliant index fell 0.39% to 3,618.63 points. The EGX35-LV declined 0.55%, and the EGX70 index for small and medium-sized enterprises edged down 0.12%. The broader EGX100 index also shed 0.17%, ending the week at 14,236.18 points.
Market capitalization closed at EGP 2.49 trillion, reflecting investors’ cautious positioning as Egypt navigates ongoing economic reforms and awaits further clarity on monetary policy.
Trading data showed a clear split in investor behavior. Egyptian and Arab investors were net sellers, offloading EGP 7.04 billion and EGP 21.7 million worth of shares, respectively. In contrast, foreign non-Arab investors stepped in as net buyers, acquiring around EGP 7.06 billion in stocks.
Analysts say the divergence reflects domestic liquidity pressures versus foreign investor appetite for undervalued Egyptian equities. “International funds see long-term value, particularly in blue-chip stocks, despite short-term volatility,” said Mona El-Shazly, a Cairo-based market strategist.
Among the standout performers:
- Samad Misr – EGYFERT surged 20% to EGP 208.59 per share, buoyed by strong fertilizer demand.
- October Pharma jumped 19.99% to EGP 150.40, extending its rally on expectations of rising exports.
- Alexandria New Medical Centre climbed 19.97% to EGP 35.62, reflecting renewed investor interest in healthcare stocks.
Meanwhile, the week’s biggest laggards included:
- Saudi Egyptian Investment and Finance, down 6.24% to EGP 83.01.
- Northern Upper Egypt Development & Agricultural Production, off 4.89% at EGP 2.92.
- Misr Oils and Soap, which dropped 4.59% to EGP 190.32.
The Central Bank of Egypt’s strategy of raising interest rates has succeeded in attracting foreign inflows, bolstering international participation in equities. Yet, domestic investors continue to face constrained liquidity, limiting their ability to match the scale of foreign buying. The African Development Bank has emphasized that Egypt’s capital markets are a critical pillar for financing development, especially as the government accelerates privatization programs to draw global investment.
Looking ahead, analysts expect short-term volatility ahead of the central bank’s upcoming policy meeting. Still, the recent surge in foreign inflows highlights investor confidence in Egypt’s long-term reform trajectory, reinforcing its appeal as a frontier market growth story. While local investors remain cautious, sustained international interest suggests the Egyptian Exchange is likely to remain a key destination for global capital seeking exposure to emerging markets.
