Professor Ali Gamal Abdelgawad: EGX 30 Index

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Professor Ali Gamal Abdelgawad: EGX 30 Index

Prepared by: Professor Ali Gamal Abdel Gawad – Lecturer of Investment and Finance

The EGX30 index closed at 41,856.76 points, achieving a daily increase of 0.75%, with trading volume reaching approximately 197 million shares, compared to a 3-month average of 311 million shares, reflecting a selective improvement in buying appetite.

The strong medium-term performance is evident, with the index recording gains of 11.99% over 3 months, 26.69% over 6 months, and 40.53% year-on-year, driven by leading stocks with significant weighting. Conversely, the slight monthly decline (-0.25%) indicates a cooling of short-term momentum and natural profit-taking after an extended upward trend.

Fundamentally, the EGX30 is benefiting from a relative improvement in the profitability of some leading sectors, particularly banking, financial services, and telecommunications, along with improved operational flexibility for major companies. The macroeconomic environment remains cautious due to interest rates and funding costs, but growth in nominal earnings and improved cash flows at major companies are supporting current valuations.

Approaching the 52-week high of 42,624 points reflects improved confidence, but sustainability requires continued real earnings growth and a balance between operational expansion and cost control.

Technically, the EGX30 is moving in a medium- to long-term uptrend, trading above key support at 41,200–41,400 points. The daily range of 41,555–42,112 points indicates consolidation near a pivotal resistance at 42,100–42,300 points; a clear close above this level could pave the way for a retest of the yearly high.

If this fails, the likely correction will be limited to rebuilding momentum without breaking the overall uptrend, supporting a selective and risk-management strategy.