The benchmark EGX30 hit fresh highs at the start of this week, buoyed by the banking and real estate sectors, the expectation of new paper hitting the market, and a positive outlook for 2Q 2025 corporate earnings, according to analysts surveyed by EnterpriseAM. The positive sentiment pushed the EGX30 to record highs during Sunday and Monday’s session, before inching down 1.0% at the close of play yesterday. The index is now up 13.66% YTD.

The banking sector largely drove the rally, led by index heavyweight CIB, several analysts we spoke with agreed. CIB’s shares are up 15.4% YTD, and are up 0.7% this week alone. The bank’s shares are a bellwether for the EGX30, indicating to analysts that the index is continuing on a general upwards trend.

Banks are doing well, even as interest rates are starting to come down: The banking sector is broadly expected to report healthy earnings in 2Q 2025, which will further help support a stock market rally, even as the Central Bank of Egypt (CBE) moves ahead with its monetary easing cycle. As interest rates come down, investor interest in treasury bills is expected to cool off and instead be redirected to stocks, Managing Director of Alpha Financial Investments Mohamed told EnterpriseAM. Interest rate cuts could also support growth in real estate by making loans and financing payments more palatable, therefore encouraging buyers, he said.

Real estate players — particularly expectations of a strong showing from the sector in 2Q earnings — have also acted as significant catalysts for the index hitting record highs this week, according to our sources. The positive outlook on EGX-listed real estate companies’ earnings is underpinned largely by these companies shifting towards “exporting” real estate, whether by attracting foreign investors to buy units in the local market or by bringing in FX revenues with projects outside of Egypt, Hassan told EnterpriseAM. The sustained drive to launch projects outside Egypt is expected to contribute to strong earnings from real estate players down the line, which will further support the stock market, Hassan said.

Background: Talaat Moustafa Group is currently working on a USD 10 bn project in Iraq, two mixed-usedevelopments in Oman totaling USD 3.9 bn, and its USD 17.3 bn Benan City project in Saudi Arabia that is already under construction. Palm Hills also moved into Saudi Arabia, partnering with Dallah Real Estate last year to develop urban projects and 15 international schools in the kingdom, and also began working on expanding to the UAE through the establishment of a subsidiary and wholly owned limited liability company in Abu Dhabi earlier this year.

Then there’s the recent revival of the country’s IPO market: Bonyan’s IPO — despite having a muted first day on the EGX — is an encouraging development for equities as a REIT-like company, which is a novelty for the market, Head of Investment at Tycoon Securities Brokerage Doaa Zidan said. Couple Bonyan’s IPO (and the National Printing Company announcing its intention to float this week) with the highly anticipated resumption of the government’s privatization plans and asset sales this fiscal year, and you’ve got a lot more investor appetite being built up. All of this new paper may not itself be pushing up the index, but it is likely attracting a new segment of investors, which is driving up liquidity and turnover, Arabeya Online Securities Brokerage’s High Net Worth Client Department Head Sameh Gharib said.

Tags: