Professor Ali Gamal Abdelgawad: Egypt's EGX30 Index

• بواسطة دكتور علي جمال عبد الجواد
• 2025 Nov 17
• 1244

EGX30 Index: A Comprehensive Overview of the Egyptian Stock Exchange's Performance Amidst Sensitive Economic Variables

The Egyptian Exchange's main index, the EGX30, has recently exhibited mixed performance, leaning towards positive, supported by strong foreign inflows and relative market stability despite global economic pressures and heightened volatility in emerging markets. Despite some local traders' attempts to take profits, the index remains on an upward trajectory in the medium term, reflecting relative confidence in leading stocks.

Current Index: ≈ 40,190.62 points

Strong Resistance: ~41,055 to ~41,628 points

Immediate Support: ~40,483 to ~39,910 points

First: Financial and Fundamental Analysis

1. A Changing Economic Environment

The Egyptian market operates within an economic context marked by several challenges, most notably:

Continued high inflation rates.

Pressures on domestic liquidity.

Monetary policies relying on high interest rates to maintain monetary stability.

Nevertheless, the EGX30 benefits from a significant factor: the renewed appetite of foreign investors, particularly following financial reform measures and developments in the government's IPO program, which has deepened the market and increased the attractiveness of leading stocks.

2. Performance of Leading Companies

The EGX30 comprises the 30 most liquid companies, most of which are financially strong in the banking, telecommunications, energy, and non-banking financial services sectors.

Many of these companies demonstrate:

Stable earnings growth.

Expansion of activities.

Attractive price-to-earnings ratios compared to regional markets.

This makes the index appealing to institutional investors who rely on long-term fundamental analysis.

Second: Technical Analysis of the EGX30 Index

Technically, the index is moving within a medium-term uptrend, supported by increased trading volumes during upward sessions, reflecting strong buying momentum.

Key Levels:

Major Support: Near the previous correction zone, which is considered a strong launching pad for any new upward wave.

Resistance: Near the index's historical highs, where profit-taking occurs naturally with each breakout attempt.

Technical indicators such as the RSI and MACD also indicate continued positive momentum as long as foreign liquidity remains present.

Third: News Affecting the EGX30

In the latest economic reports:

Trading sessions witnessed a notable rise driven by foreign inflows exceeding EGP 4 billion at certain times, which supported the index's rebound and upward movement.

Some leading companies achieved strong gains after announcing positive quarterly results.

Conversely, the market experienced selling waves from some local investors seeking to realize profits after the recent gains.

Developments regarding the fuel price hikes and subsidy reductions had a positive impact on the index due to their reflection on the improved state of the budget.

Fourth: The Index's Future Outlook
Potential Upward Scenario

If foreign inflows continue and leading companies maintain strong financial results, the index is expected to continue its upward trajectory, with the potential to break new highs in the medium term.

Profit-Taking Scenario

The EGX30 may experience temporary corrections, especially if:

Foreign liquidity slows down.

Inflationary pressures intensify.

Local investors reduce their positions. However, any downward movement is likely to remain limited as long as the overall trend remains stable and liquidity is strong.

Overview

The EGX30 remains an attractive index for medium- and long-term investors, and continues to offer good opportunities in its leading stocks, especially with price-to-earnings ratios remaining at acceptable levels compared to regional markets.

The EGX30 index currently finds itself caught between strong support and growing foreign confidence on one hand, and economic pressures and liquidity fluctuations on the other.

Despite the challenges, the overall index trend remains positive, reflecting the Egyptian market's ability to maintain its appeal in an unstable global environment.

• الوسوم
• Professor
• Ali
• Gamal
• Abdelgawad:
• Egypt's
• EGX30
• Index
• Professor Ali Gamal Abdelgawad: Egypt's EGX30 Index