Egypt’s stock market surged to a fresh record high on Sunday, with the benchmark EGX30 index climbing for the seventh consecutive session, supported by easing inflation and rising investor confidence, Reuters reported.
Egypt’s stock market extended its winning streak on Sunday, surging to a new record high as easing inflation and strengthening investor confidence fueled a rally across sectors.
The benchmark EGX30 index rose for the seventh consecutive session, continuing its bullish momentum and underscoring growing optimism in the Egyptian economy. The sustained uptick was underpinned by falling inflation rates, favorable macroeconomic reforms, and increased foreign investor participation.
The record-setting performance comes at a critical time for Egypt, which has been navigating a delicate economic recovery amid ongoing structural reforms and a new wave of privatization efforts aimed at boosting growth and curbing public debt.
Investor Sentiment Lifts Markets
Egypt’s stock market has emerged as one of the region’s top performers in recent weeks. According to market analysts, declining inflation is playing a pivotal role in the current uptrend, offering a breather to both consumers and investors after months of high prices.
“The market is responding positively to macroeconomic stabilization,” said Mohamed Radwan, head of equities at Pharos Holding in Cairo. “Falling inflation not only signals improved monetary conditions but also enhances corporate profitability and purchasing power — both of which are key for equities.”
Egypt’s annual urban consumer inflation dropped for a third consecutive month in July, falling to 15.9% — down from a peak of 35.7% in mid-2023. This downward trend has fueled speculation that the Central Bank of Egypt may shift toward a more accommodative stance, potentially cutting interest rates in the near term.
Foreign Capital Flowing Back
Foreign investors are also returning to the Egyptian market, encouraged by improved currency stability and progress on key economic reforms. After a period of capital flight in 2022 and early 2023, recent quarters have seen renewed interest in Egyptian equities, particularly in sectors like banking, real estate, and non-banking financial services.
The government’s accelerated privatization program — including partial stake sales in state-owned enterprises — has further buoyed investor sentiment. Market observers expect these moves to deepen liquidity and strengthen the capital market’s long-term prospects.
Sectors Leading the Rally
Blue-chip stocks in banking, telecommunications, and industrials led the charge on Sunday. Commercial International Bank (CIB), Egypt’s largest private lender, recorded strong gains, reflecting investor confidence in the sector’s resilience. Meanwhile, Telecom Egypt and Ezz Steel also posted notable advances amid strong earnings expectations.
“The breadth of the rally indicates that this is not just speculative movement but rather a reflection of broad-based confidence,” said Rania Yacoub, chairwoman of Three Way Brokerage.
Despite lingering global economic uncertainties and geopolitical tensions in the region, Egypt’s equity market appears poised for further growth. Analysts caution, however, that the sustainability of the rally will depend on continued progress in structural reforms, inflation control, and investor-friendly policies.
“The market’s performance is encouraging, but vigilance is necessary,” added Radwan. “Long-term gains require consistent economic discipline and transparency in policy execution.”
As Egypt moves toward the end of the fiscal year, market watchers will closely monitor earnings season, central bank decisions, and developments around IMF-backed reforms for further cues.
