The Egyptian Exchange (EGX) ended the trading week on a firmer footing on Thursday, recovering part of the previous session’s losses as Egyptian and Arab investors returned to buying, while the Central Bank of Egypt’s decision to leave interest rates unchanged provided a supportive macroeconomic backdrop. The rebound indicated that Wednesday’s decline reflected a period of profit-taking rather than a broader deterioration in market sentiment.
The benchmark EGX30 rose 0.54% to close at 52,311.51 points, while the EGX33 Shariah Index gained 0.53% to 5,876.53 points. The EGX35-LV advanced 1.01% to 6,155.36 points, the EGX70 Equal Weight Index climbed 1.73% to 16,281.62 points, and the broader EGX100 Equal Weight Index increased 1.47% to 22,067.78 points.
The market capitalisation of listed shares increased to EGP 3.812 trillion, recovering approximately EGP 29.5 billion from Wednesday’s close and reversing a significant portion of the previous session’s decline. Trading activity remained active, with around EGP 9.4-9.5 billion worth of securities traded through approximately 189,000 transactions, involving about 2.71 billion shares, reflecting continued investor participation rather than a low-volume rebound.
Domestic Investors Offset Foreign Selling
Official EGX investor data showed a clear rotation in market flows compared with the previous trading session.
Egyptian investors recorded net purchases of EGP 323.2 million, while Arab investors added EGP 1.32 billion on a net basis. Non-Arab foreign investors, meanwhile, were net sellers of EGP 1.65 billion.
The figures marked a reversal from Wednesday, when foreign investors had been net buyers while domestic investors realised profits. Thursday’s trading therefore reflected a shift in investor composition rather than a one-sided move in market sentiment, with domestic liquidity absorbing foreign selling.
Central Bank Holds Rates Steady
Investor sentiment was also supported by the Central Bank of Egypt’s Monetary Policy Committee, which left its benchmark interest rates unchanged, maintaining the overnight deposit rate at 19.00%, the overnight lending rate at 20.00%, and the main operation and discount rates at 19.50%.
The committee cited moderating inflationary pressures alongside persistent geopolitical uncertainty, concluding that maintaining current policy settings remained appropriate while continuing to monitor domestic and international economic developments.
For equity investors, the decision reduced short-term monetary policy uncertainty ahead of the second-quarter corporate earnings season and reinforced expectations that future policy decisions will remain data dependent.
Recovery Broadens Beyond Blue Chips
Thursday’s recovery extended beyond the benchmark index, with the stronger performance of the EGX70 and EGX100 indicating renewed investor appetite for small and medium-sized companies after the previous session’s correction.
Buying interest was particularly evident in several property-related companies. United Housing & Development advanced 20.00%, Naeem Real Estate Holding Group gained 19.99%, while Gharbia Islamic Housing Development rose 19.15%, highlighting renewed demand for selected real estate stocks.
Elsewhere, trading across banking, financial services and industrial companies remained mixed, suggesting investors continued to favour fundamentally strong companies rather than adopting broad-based sector positioning.
Capital Market Reform Continues
Beyond the day’s trading, investors continued to assess structural reforms aimed at strengthening Egypt’s capital market.
Recent discussions between the Egyptian Exchange, the Financial Regulatory Authority and the Egyptian Tax Authority on clarifying the tax treatment of investment funds represent an important step towards improving regulatory certainty. Market participants have long argued that greater clarity over taxation would facilitate the establishment of additional investment funds, improve operational consistency across market participants and strengthen Egypt’s attractiveness to institutional investors.
At the same time, the EGX continues to expand its primary market. The Exchange recently received an application to list El Taameer Tourism Company on the SME market, supporting the government’s broader strategy of increasing the number and diversity of listed companies and expanding financing opportunities for the private sector.
Top Movers
Among the session’s strongest performers:
- United Housing & Development rose 20.00% to EGP 20.10.
- Naeem Real Estate Holding Group gained 19.99% to EGP 19.33.
- Gharbia Islamic Housing Development advanced 19.15% to EGP 51.70.
The weakest performers included:
- Saudi Egyptian Investment & Finance, down 4.97% to EGP 244.33.
- GMC Group for Industrial, Commercial & Financial Investments, down 4.59%.
- Middle & West Delta Flour Mills, down 3.05%.
Outlook
Investors will now turn their attention to several near-term catalysts that are likely to influence market direction during the coming weeks. These include the forthcoming second-quarter corporate earnings season, progress in implementing the proposed investment fund tax reforms, developments in the government’s IPO and State Ownership Programme, and the trajectory of inflation following June’s moderation. Future guidance from the Central Bank of Egypt will also remain closely watched as investors assess the outlook for monetary policy.
Thursday’s rebound demonstrated that domestic liquidity remained resilient despite intermittent foreign selling. While individual trading sessions are likely to remain sensitive to regional geopolitical developments and shifts in global investor sentiment, continued progress on macroeconomic stabilisation, regulatory reform and capital market development would further strengthen Egypt’s investment case for both domestic and international institutional investors.
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