The Egyptian Exchange closed the first half of 2026 on a positive note, overcoming the uncertainty triggered by regional geopolitical tensions in the second quarter of the year and buoyed by sustained trading activity.
It officially launched its derivatives market, starting with EGX30 Index futures in March. It also expanded its offerings in June by introducing single-stock futures for major blue-chip companies including the Commercial International Bank (CIB) and the Talaat Mustafa Group (TMG).
Data from the stock market showed the benchmark EGX30 Index rising to 50,487.96 points at the end of June, compared with 41,828.97 points at the close of December 2025, marking gains of 20.7 per cent in one of the sharpest rallies in recent years.
Ehab Rashad, vice chair of Mubasher Capital, noted that the first quarter of the year was marked by robust participation from Arab and foreign investors. With Gulf markets pressured by the outbreak of the Iran-US war, Egypt attracted inflows from investors shifting away from those exchanges.
Had it not been for the June pullback in the war, the market’s advance could have exceeded 40 per cent, Rashad said.
By the end of June, the EGX30 had slipped 4.12 per cent to 52,658.75 points, with Rashad describing the decline as a routine seasonal occurrence.
Mohamed Maher, founder of Prime Holding and a member of the Egyptian Securities Association, said the stock market’s performance was very strong, with the benchmark index hitting a new record. He noted that the US-Iran war had weighed on trading in the second quarter, though its impact was limited compared with other regional exchanges.
One of the prominent features of the past six months has been the two standout private‑sector initial public offerings (IPOs) offered on the Egyptian Exchange this year, both marked by extraordinary demand.
Gourmet Egypt’s LE1.31 billion offering valued the retailer at about LE2.76 billion and drew overwhelming interest, with its retail tranche oversubscribed roughly 56 times and the institutional tranche about 12 times.
Korra Energi’s LE735 million flotation valued the energy solutions provider at close to LE7.2 billion, attracting strong appetite with retail subscriptions oversubscribed about 31 times and institutional demand covered nearly three times.
Together, the listings underscore the depth of investor appetite for Egyptian equities, particularly in the consumer and energy sectors, and highlight the market’s ability to channel liquidity into diverse industries even amid regional uncertainty.
At the end of last year, economic forecasts pointed to the Central Bank of Egypt (CBE) moving to cut interest rates by some 600 to 700 basis points. But the fallout from the regional war, the surge in global oil prices, and the rise in inflation forced a postponement of that step, which would otherwise have given the stock market a lift.
Maher believes the war affected the bourse indirectly by driving up international oil prices and pushing inflation higher. These factors led the CBE to shelve its rate‑cut plans, a move that would have had a positive impact on equities, he said.
Lower rates would have encouraged individual investors to see the market as an opportunity for profit, boosting liquidity and participation. With many companies showing solid financial performances and strong profit potential, the environment was primed for broader gains, he added.
The government moved ahead in the first half of the year with its plans to accelerate the divestment from state‑owned assets, announcing its intention to list a number of companies through the Asset Management Unit headed by Hashem Al-Sayed.
Cairo is intensifying efforts to implement the programme by selling stakes to strategic investors or floating them on the Exchange as part of a wider package of economic reforms pledged to the International Monetary Fund (IMF) under an $8 billion financing agreement that commits Egypt to boosting the private sector and scaling back the state’s direct role in economic activity.
A total of 20 state‑owned companies have so far been temporarily listed on the Egyptian Exchange, out of 30 targeted under the government’s offerings programme. They include 20 firms from the public business sector and 10 from the petroleum sector, which are being registered in stages.
The temporary listing is a preparatory step giving the companies a six-month window to prepare the documents needed to guarantee governance and transparency, necessary in order for stakes to be sold either via an IPO or through a private placement.
Maher said that listing oil, industrial, and insurance companies will expand trading volumes and market capitalisation on the Exchange, helping to attract new investors seeking emerging markets with deep liquidity.
Rashad expects several offerings in the fourth quarter of the year that could draw fresh cash into the market. If the earnings multiples of the listed firms prove attractive, he said, new money will flow in and trading activity will rise.
The market is now waiting for what is set to be the largest new flotation on the Egyptian Exchange — the sale of 20 per cent of Misr Life Insurance with issued capital of LE5 billion divided into 500 million shares at a par value of LE10 each.
According to press statements by Mohamed Sabry, vice chair of the bourse, the second half of the year is also expected to see the listing of three new companies.
* A version of this article appears in print in the 23 July, 2026 edition of Al-Ahram Weekly
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