EGX30 jumps 3.49% to 50,104.83 points in broad rebound
Key Facts
Egypt’s benchmark EGX30 closed Tuesday, October 27, at 50,104.83 points, up 3.49%, according to the session summary published by FoudaLens after the close. The advance followed a broad sell-off on October 25 that weighed on stocks and the market’s capitalization. Trading value in shares during the rebound session reached 8.26 billion Egyptian pounds. Gains spread to most traded stocks, with 216 rising and 11 falling out of 237 stocks. These figures distinguish the recovery session from the previous session’s losses, which were linked to broad selling pressure and factors including foreign institutional selling and liquidity constraints.
The October 25 session was more severe for small- and mid-cap stocks; the EGX100 EWI fell more than 10%, prompting the exchange to halt trading for 30 minutes, according to See News. The trading halt mechanism was activated again that day after the index breached the set decline threshold, reflecting the severity of the session’s losses. Market breadth then showed the opposite picture from Tuesday: among 236 companies traded, between 221 and 225 declined, while only 9 rose, according to Ahram Online. Losses on October 25 extended across most sectors, while bank stocks were relatively more resilient. Share trading value in that session ranged from 6.72 billion to 7.25 billion Egyptian pounds, according to Ahram Online’s estimate.
Estimates of the market-capitalization losses in the sell-off session varied; Ahram Online put the decline at about 177 billion Egyptian pounds on October 25. The report linked the pressure to currency challenges and foreign institutional selling, as well as liquidity constraints related to a major share offering and the unwinding of leveraged positions, amid regional geopolitical uncertainty. EnterpriseAM Egypt reported that the EGX30 fell 3.6% in the October 25 session, although it remained up 17.7% year to date through that date. Enterprise estimated session trading value at about 7.2 billion Egyptian pounds, 36.4% below the previous 90-day average. The report added that international investors were the only group to record net selling, placing the decline in the context of institutional selling pressure and lower trading liquidity.
A limited number of stocks rose during the October 25 session despite the broad decline; Abu Qir Fertilizers gained 4.17%, Emaar Misr rose 2.43%, and Abu Dhabi Islamic Bank-Egypt shares advanced 0.22%, according to Ahram Online. This narrow range of gains contrasted with the breadth of the advance on October 27, when 216 companies ended trading higher. A comparison of the two sessions shows that the benchmark’s rebound followed a day when most companies declined and trading was halted, with gains prevailing again in the following session. Available data do not include details on the performance of other indices or trading trends after Tuesday’s close.