EGX adds EGP 78bn in market value as institutional buying accelerates, trading exceeds its 10-day average by 43.5% and foreign investors return to Treasury debt.
Egyptian stocks rallied on Tuesday, November 10, with the benchmark EGX30 gaining 2.08 per cent to 52,483.46 points, as institutional buying and stronger trading activity accompanied a sharp appreciation of the pound and renewed foreign demand for government debt.
The Egyptian Exchange (EGX) added approximately EGP 78 billion in market capitalisation, lifting its total value to EGP 4.165 trillion. Equity turnover reached EGP 12.93 billion, according to Beltone, 43.5 per cent above the previous 10-session average of EGP 9.01 billion.
Tuesday’s advance followed Monday’s 1.19 per cent gain, taking the benchmark’s two-session increase to 3.29 per cent and extending its recovery above 52,000 points.
Institutions Lead Broad-Based Rally
The EGX70 index of small and medium-sized companies outperformed blue chips, climbing 2.99 per cent to 18,495.97 points, while the broader EGX100 rose 2.62 per cent to 24,495.46.
Construction and engineering led sector gains, rising 4.64 per cent, followed by non-bank financial services at 3.49 per cent, real estate at 2.68 per cent and banking at 2.66 per cent.
Institutional investors bought a net EGP 63 million of equities, offsetting net retail selling of approximately the same amount. Egyptian institutions purchased a net EGP 54.1 million, foreign institutions EGP 39.9 million, while Arab institutions sold EGP 31 million.
By nationality, Egyptians recorded net equity purchases of EGP 14.3 million and non-Arab foreigners EGP 42.1 million, against Arab net sales of EGP 56.4 million.
Financial and property stocks contributed to the advance. EFG Holding gained 6.75 per cent, Banque du Caire rose 4.83 per cent, Commercial International Bank added 2.30 per cent and Talaat Moustafa Group climbed 2.99 per cent.
The combination of higher turnover, institutional demand and small-cap outperformance suggested broader participation in the rally, rather than gains concentrated in a handful of index heavyweights.
Foreign Treasury Demand Lifts Pound
The Egyptian pound strengthened approximately 1.2 per cent against the dollar, with the US currency declining by around 66 piastres to EGP 53.24 for buying and EGP 53.38 for selling, according to reported Central Bank of Egypt quotations.
The currency’s appreciation coincided with renewed overseas demand for Egyptian Treasury instruments.
Al Arabiya Business, citing exchange data, reported combined foreign and Arab net purchases of government debt worth $996 million in Tuesday’s secondary-market trading, following approximately $615 million on Monday — a two-session total of $1.61 billion.
Of Tuesday’s reported purchases, non-Arab foreigners accounted for $906 million and Arab investors $90 million.
However, Al Borsa published a lower estimate of $840 million for Tuesday’s non-Arab foreign purchases, underscoring differences in investor coverage and reporting. The figures represent secondary-market securities transactions, not necessarily equivalent new foreign-exchange inflows.
The scale of Treasury purchases contrasted with comparatively modest foreign buying of listed equities, suggesting international portfolio demand remained concentrated in Egyptian fixed-income instruments.
Attractive local-currency yields can support foreign demand and the pound, but such investments remain sensitive to global interest rates, exchange-rate expectations and changes in risk appetite.
Outlook: Earnings and Capital Flows Hold the Key
Tuesday’s performance brought together stronger equity prices, increased turnover, institutional participation and an appreciating currency — encouraging signs for Egyptian financial markets.
The EGX70’s out performance also suggested that improving sentiment extended to smaller companies, while currency stability could ease imported-cost pressures and improve earnings visibility for businesses dependent on overseas supplies.
Related News:
Egypt Stocks Rise as Foreign Investors Buy $615mn Debt, Sell Equities
Egypt’s Stock Recovery Stalls as Institutions Sell EGP257mn
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