• Construction material stocks, especially cement, surged on the Egyptian Exchange amid market optimism over Gaza’s potential reconstruction projects.
• Individual investors dominate trading, limiting main index growth, while institutional participation declines due to lack of large offerings attracting them.
• Egyptian Exchange gained 1.8% last week, with main and small-mid cap indices rising, supported by local and foreign investor activity.
  

Gaza

In an interview with Alarabiya Business, Chairperson of 3Way Finance for Securities Brokerage Company, Rania Jacoub, disclosed that the construction material sectors, particularly cement, has witnessed strong gains in the Egyptian Exchange amid expectations of Gaza’s reconstruction.

The chairperson also adds that individual investors dominate a large portion of the Egyptian market’s trading. She goes on to indicate that this means it  limits the rise of the main index despite positive news.

Market Trading

Rania Jacoub goes on to explain that there is a decline in institutional participation in trading. This is due to the absence of large offerings that typically attract institutions. Despite this, the Egyptian Exchange posted gains last week, fueled by purchases from institutions and Arab and foreign investors. Moreover, these gains were also supported by a range of positive economic indicators in Egypt.

Last week, the Egyptian Exchange saw its market capitalization rise 1.8%, recording weekly gains of roughly EGP 46.3 billion. This is after closing the week at EGP 2.642 trillion. The main index gained 1.4%, increasing from EGP 1.412 trillion to EGP 1.432 trillion, Meanwhile, the small and mid-cap index climbed 3.3%, rising from EGP 649.1 billion to EGP 670.2 billion.

Bottom Line: Egypt’s construction and basic materials stocks are rising on Gaza reconstruction expectations. Meanwhile, individual investors continue dominating market activity. Additionally,  the Egyptian Exchange sustained gains last week, driven by local, Arab, and foreign investor purchases.