The Egyptian Stock Exchange gains 10 billion Egyptian pounds and its indices continue to rise
The Egyptian Stock Exchange began trading today on a strong positive note, recording a collective rise in all main and sub-indices, in continuation of the upward trend that concluded yesterday's trading in the green, reflecting a state of optimism prevailing among investors in the local market.
In just the first half hour of trading, listed stocks achieved rapid market gains of 10 billion pounds , boosting the market capitalization of listed companies from its gains, rising from 2.954 trillion pounds at the close of the previous session to about 2.964 trillion pounds, in a strong indication of the flow of buying liquidity from the very first moments.
Performance of key and sub-indices
On the indices front, the EGX30, the main index of the Egyptian Exchange, continued its record-breaking run, rising 0.41% to reach 41,587 points. This index is considered the most important benchmark for the performance of the largest and leading companies in the market. Simultaneously, the EGX30 Equal Weight Index recorded growth of 0.26%, reaching 50,995 points, reflecting a relative balance in the performance of leading stocks.
As for the broader EGX 30 Total Return Index, it jumped 0.3% to 18,883 points. The EGX 35-LV Index also rose, gaining 0.26% to reach 4,626 points.
Notable activity from small and medium-sized enterprises
The gains weren't limited to blue-chip stocks; they extended to small and medium-sized companies, which often attract a wide range of smaller investors. The EGX 70 Equal Weight Index rose strongly by 0.86% to reach 13,103 points, which positively impacted the EGX 100 Equal Weight Index, which climbed by 0.71% to 17,306 points.
Regarding sectoral and specialized indices, the Islamic Sharia Index increased by 0.44% to reach 4,464 points, while the “Tamayuz” Index deviated from the general trend, declining by 0.7% to reach a level of 21,027 points.
Economic context and implications of the rise
This strong performance of the Egyptian Stock Exchange comes within a broader economic context, where many analysts and economists view the stock market as an effective hedge against inflation and an attractive investment haven for both domestic and foreign capital. This consecutive rise indicates investor confidence in current economic plans and the ability of Egyptian companies to achieve healthy growth and profitability rates despite global challenges.
Historically, trillions of riyals in market capitalization have been a significant indicator of market depth, the number of listed companies, and the attractiveness of both government and private offerings. Furthermore, the main index's surpassing of the 41,000-point mark places the Egyptian Stock Exchange in a completely new price range, potentially opening the door to increased foreign and Arab capital inflows seeking investment opportunities in emerging markets with attractive valuations.
The continued green color on trading screens reinforces the stock exchange’s role as a major financing platform for companies, and contributes to supporting the macroeconomy by providing the necessary liquidity for expansion and growth, which the financial and business community is watching with great interest in the coming period.
