EGX ends week with slow gains as investors anticipate progress in IMF talks

Muhammed Khalid , Thursday 11 Jan 2024

The Egyptian Exchange main index (EGX30) achieved humble growth in the second week of 2024 as investors move slowly, awaiting progress in Egypt’s negotiations with the International Monetary Fund (IMF).

EGX trading hall. Ahram Gate.
EGX trading hall. Ahram Gate.


The EGX30 inched by 0.67 percent to end the week at 25,519 points.

Speaking to Ahram Online, financial market analyst Hanin El-Mahdy cited investors’ anticipation of the terms of the new deal between Egypt and the International Monetary Fund as the reason behind the humble increase in the main index this week.

A high-level delegation from the Egyptian government visited Washington DC on Tuesday to push forward Egypt's almost standstill loan program with the International Monetary Fund (IMF) and explore a new additional loan for the country amid its ongoing economic difficulties. 

"The week showcased a shift in the index's leading stocks. Initially dominated by Commercial International Bank (CIB), the attention later turned to Abu Kir for Fertilizers (ABUK) and Misr Fertilizers Production Co SAE (MFPC),” El-Mahdy noted.

She elaborated that CIB stock started the week at EGP 75 and closed at EGP 73.81, whereas ABUK opened at EGP 82 and closed at EGP 87.59. MFPC, she added, kicked off the week at EGP 62.25, concluding at EGP 65.06.

Meanwhile, the EGX70 and EGX100 ended the week with outstanding performance, jumping 4.89 percent and 4.02 percent, respectively, closing at 5,955 points and 8,479 points.

Market capitalization, a measurement of the total value of listed stocks, grew by 1.89 percent to EGP 1,780 billion. The trading value doubled to EGP 321.3 billion over the week from EGP 149.1 billion in the previous week.


Positive outlook for EGX

El-Mahdy expressed optimism regarding the index's overall stability, maintaining a position above 25,500 points. "This indicates a strong upward trend in the EGX30," she explained.

The analyst projected resilience in the index's performance. "Despite potential corrections during the decision reveal, the EGX30, with its 30 large companies boasting substantial daily trading volume and robust financials, is expected to sustain its strong upward trend."

She emphasized the significant market dominance held by many EGX30 companies.

Short link: