Egyptian Exchange soars to record heights in week despite regional turbulence

Muhammed Khalid , Thursday 19 Oct 2023

The Egyptian Exchange (EGX) indices achieved significant leaps after a week of fluctuations. The main index reached an unprecedented summit above 22,400 points before losing nearly 1,000 points due to the escalating war in Palestine.

EGX trading hall.
EGX trading hall. Ahram Gate.

"Due to the conflict in Palestine, the EGX30 index experienced a significant capital outflow, with uncertainty and investor concerns mirroring the global stock market performance. The tide turned with the news of progress in the IMF’s talks with Egypt regarding the reviews of the economic reform program,” financial market analyst Hanin El-Mahdy told Ahram Online.

"Stock markets can be profoundly affected by external events. However, the main index EGX30 index displayed remarkable resilience. With the advent of the conflict on October 8, the index plummeted to a week-low of 18,455.100 points before surging to an unprecedented high at 22,424.600 points and then settling at 21,616.600 points this week,” El-Mahdy added.

Over the week, the main index surged 8.07 percent, closing at 21,616.6 points, while the EGX100 jumped 7.1 percent to settle at 5,945.97 points.

The small and medium companies index, EGX70, achieved a more moderate growth of 5.73 percent, ending the week at 3,919.11 points.

From 15 to 19 October, the market’s total trading reached a value of EGP 235.7 billion, up EGP 46.9 billion from last week.

Meanwhile, market capitalisation, a measure of the total value of listed companies, jumped 8.93 percent over the week, closing Thursday at EGP 1,473 billion.

As for the main drivers of weekly growth in the market among different sectors, El-Mahdy said that fertilisers "is unquestionably in the spotlight, drawing keen interest from investors."

"Notably, EGX30-listed companies, including Misr Fertilizer Production Company (MOPCO) and Abu Kir Fertilizers (ABUK), delivered substantial gains, with MOPCO surging by 48.7 percent and ABUK by 21.48 percent. In EGX70, Egyptian Chemical Industries (KIMA) didn't lag behind, recording an impressive surge of 37.75 percent within just one week, ” the analyst explained.

Short link: