Egypt’s benchmark EGX30 rose 1.52% to 52,273.34 points on Thursday, extending its recovery for a second consecutive session as buying shifted towards leading shares. Yet market breadth narrowed, trading activity weakened and foreign institutions remained net sellers, exposing the limits of the rebound.
Market capitalisation increased EGP 25.6bn to EGP 4.051tn, bringing the two-session recovery to approximately EGP52bn against losses of EGP204bn over the preceding three sessions.
Blue Chips Regain Leadership as Breadth Narrows
The EGX70 Equal Weighted Index advanced 0.82% to 18,481.55 points, while EGX100 rose 0.80% to 24,607.43. The Shariah-compliant EGX33 gained 0.48% to 6,378.90, and the lower-volatility EGX35-LV climbed 0.70% to 6,246.22.
The change in leadership was significant. Wednesday’s recovery had been driven by smaller companies, with EGX70 rising 2.31% against EGX30’s 0.44%. Thursday reversed that pattern, as the benchmark outperformed the wider market.
According to Hapi’s closing figures, 115 shares advanced, 92 declined and 15 remained unchanged, compared with 170 gainers and 37 decliners on Wednesday.
Equity turnover fell to EGP 7.041bn from EGP 7.315bn, a decline of 3.7%, across 192,935 transactions. Trading volumes reached approximately 1.84bn shares, according to Arab Finance.
The improvement in the benchmark therefore occurred alongside less widespread buying and lower trading value, indicating a more concentrated recovery rather than accelerating demand across the exchange.
Institutional Selling Moderates but Does Not Reverse
Egyptian investors recorded net purchases of EGP70.6mn, offsetting EGP 54.9mn in foreign net sales and EGP 15.7mn in Arab net sales.
Hapi’s investor breakdown showed Egyptian individuals buying a net EGP 74.2mn, against EGP3.6mn in sales by domestic institutions. Foreign institutions sold EGP59.3mn, while Arab institutions sold EGP10.6mn.
Combined institutional net selling amounted to approximately EGP73.5mn, substantially below Wednesday’s EGP 431.9mn.
This reduction is the session’s most constructive underlying development. Institutional withdrawals moderated considerably even as the market continued rising.
Nevertheless, the buying remained concentrated among individual investors. Institutions had not returned to sustained net accumulation, limiting the evidence for a durable recovery.
Intraday Reversal Supports the Benchmark
The benchmark initially retreated towards 51,232 points before reversing course and closing at 52,273.34, recovering approximately 1,041 points from its reported intraday low.
The stronger finish contrasted with Wednesday, when an early advance lost much of its momentum before the close.
Thursday’s recovery suggests buyers became more active in leading shares as the session progressed. However, the narrower breadth and lower turnover indicate that the rebound was not equally supported across the market.
Pound Weakness and Government Yields Remain Constraints
The Egyptian pound continued to weaken, with reported Central Bank of Egypt quotations placing the dollar near EGP53.39 buying and EGP53.53 selling on Thursday, compared with approximately EGP53.04 and EGP53.18 a day earlier.
Further depreciation complicates foreign investors’ returns when measured in dollars, even when Egyptian equity prices rise.
Government debt remains a competing destination for capital. Recent Treasury-bill auctions have offered nominal annualised yields above 24% on selected maturities, although those auction yields should not be confused with Thursday’s secondary-market closing yields.
The Central Bank of Egypt maintained overnight deposit and lending rates at 19% and 20%, respectively, at its September monetary-policy meeting. Its next scheduled decision is October 29.
High fixed-income returns and exchange-rate uncertainty continue to influence the relative attractiveness of Egyptian equities.
MNT-Halan Demand Highlights Selective Investor Appetite
The contrast between the secondary market and new listings became more pronounced as MNT-Halan completed subscriptions for its initial public offering.
According to figures reported by Arab Finance, the public tranche attracted orders for approximately 2.093bn shares, equivalent to 43.6 times the 48mn shares offered to retail investors.
The institutional tranche had previously closed 11.2 times oversubscribed.
The combined EGP 7.84bn offering represents 20% of MNT-Halan’s issued capital and consists entirely of existing shares being sold by a shareholder.
Strong demand demonstrates investors’ willingness to commit capital to selected businesses, but subscription orders do not represent equivalent cash inflows into the wider stock market.
The distinction is particularly relevant as Egypt prepares further listings. Successful offerings could broaden the exchange’s investment opportunities, although competition for capital may temporarily weigh on existing shares.
Recovery Strengthens, but Confirmation Remains Elusive
EGX30 has recovered approximately 2% over two sessions, returning above its September 30 closing level. Nevertheless, it remains roughly 3% below its October 4 close of 53,911.
Smaller companies face a longer recovery, with EGX70 still approximately 7.4% below its October 4 level.
The latest session therefore points to improving price stability rather than a complete reversal of the correction.
Thursday’s decisive change was the substantial moderation in institutional selling, accompanied by a shift in buying towards blue-chip shares. Yet the recovery occurred on lower turnover, with foreign investors remaining net sellers and currency pressure continuing.
A sustained advance will require broader participation, stronger trading activity and renewed institutional inflows. The market’s next sessions will determine whether the rebound develops into a more durable recovery or remains a selective response to earlier losses.
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