Cairo — Egyptian stocks ended the week higher on Thursday as foreign investors increased exposure to both equities and treasury bills, reinforcing signs that international confidence in Egyptian assets continues to improve despite ongoing debate over tax reforms and Egypt’s market-classification review.
The simultaneous return of foreign capital to debt and equity markets suggests investors are increasingly focusing on improving macroeconomic fundamentals, strengthening foreign-currency inflows and easing pressures on Egypt’s external accounts.
The Egyptian Exchange (EGX) ended trading on a positive note, with the benchmark EGX30 index rising 0.17% to 52,652.53 points. Broader market indicators delivered stronger gains, reflecting continued investor appetite for smaller and mid-cap shares. The EGX70 advanced 1.58% to 15,450.2 points, while the EGX100 gained 1.14% to 21,357.7 points. The EGX33 Shariah Index rose 0.40% and the EGX35-LV added 0.49%.
Market capitalisation increased to approximately EGP 3.78 trillion, extending the market’s recent recovery despite regulatory and classification-related uncertainties.
Foreign investors remained the principal source of support, recording net purchases exceeding EGP 64 billion, while Arab investors also ended the session as net buyers. Egyptian investors were net sellers with transactions totaling approximately EGP 68.4 billion, largely reflecting profit-taking after recent market gains.
Market participants noted that the return of foreign investors to both equities and government debt instruments represents one of the clearest indicators of improving risk appetite toward Egyptian assets. While foreign participation in either market individually is common, concurrent inflows into both segments typically signal broader confidence in a country’s economic outlook and financial stability.
The session reinforced a trend that has become increasingly evident in recent weeks: investor interest is shifting toward small- and mid-cap companies, where valuations remain attractive and liquidity conditions continue to improve. The stronger performance of the EGX70 and EGX100 compared with the benchmark index suggests broader participation across the market rather than a rally concentrated in a handful of large-cap stocks.
Among the session’s top gainers, Subscription Rights of Aspire Capital Holding for Financial Investments-3 surged 60% to EGP 0.176, while Aspire Capital Holding for Financial Investments rose 15.76% to EGP 0.382. Nasr Company for Civil Works climbed 15.25% to close at EGP 6.12.
On the downside, Egyptian for Tourism Resorts declined 5.48% to EGP 19.85, while A Capital Holding fell 4.09% and Creast Mark for Contracting and Real Estate Development lost 3.88%.
Beyond daily trading activity, investors continued to assess developments pointing to improving capital-market conditions. According to data published by the Egyptian Exchange, foreign investors returned strongly to Egypt’s treasury-bill market during the past week, recording net purchases of approximately $2.3 billion, compared with around $860 million during the previous reporting period.
The increase coincided with a decline in Egypt’s sovereign credit-default swap (CDS) premiums, a widely followed measure of sovereign risk. Falling CDS levels generally indicate that international investors perceive lower credit risk and improving confidence in a country’s ability to meet its financial obligations, reflecting a more constructive assessment of Egypt’s economic outlook.
The renewed appetite for Egyptian debt instruments follows broader improvements in the country’s external position, supported by record remittance inflows, easing pressure on the foreign-exchange market and expectations that inflation will continue to moderate during the second half of the year.
Market participants also welcomed expansion plans announced by Egyptian fintech and brokerage platform Thndr, which intends to launch operations in Saudi Arabia in early 2027 after receiving preliminary regulatory approval. The company revealed that Egyptian investors have accumulated approximately EGP 50 billion through its platform, with investment funds accounting for nearly 60% of assets under administration.
Analysts view the expansion as further evidence of the growing maturity of Egypt’s capital markets, with local financial institutions increasingly pursuing regional opportunities while benefiting from rising investor participation at home.
The key takeaway from Thursday’s session was not the modest rise in the benchmark index, but rather the continued improvement in investor sentiment across multiple asset classes. Foreign investors remained active buyers of both equities and treasury bills, while sovereign-risk indicators continued to move in a favourable direction.
The resilience of the market in recent weeks suggests investors are increasingly looking beyond short-term uncertainty surrounding taxation and market classification, focusing instead on strengthening foreign-currency inflows, improving liquidity conditions and signs of macroeconomic stabilisation.
For investors, the combination of renewed foreign demand for Egyptian debt, sustained participation in equities and easing sovereign-risk perceptions points to a market increasingly driven by fundamentals rather than headline risk. Whether that momentum continues will depend on the successful implementation of reforms aimed at enhancing market accessibility, deepening liquidity and maintaining Egypt’s attractiveness within global investment benchmarks.
