CAIRO, March 7, 2026, 11:16 EET
Egypt’s EGX30 slid 3.5% last week, marking its steepest decline since June. Thursday’s bounce, which halted a four-day slide, lifted the index 2.29% to 47,516.44. Commercial International Bank jumped 3.7%, driving the rebound. Reuters
The drop is notable, coming as Cairo’s stock exchange pushes to boost liquidity and attract new money—right when regional conflict is rattling investor nerves. March 1 saw the Egyptian Exchange roll out EGX30 futures, contracts that let investors hedge against volatility or speculate on the index’s direction. Meanwhile, the government just completed its fair-value assessment for state-owned Banque du Caire, a step toward the long-awaited IPO. ArabFinance
Just days ago, things had seemed more solid. The IMF wrapped up two reviews of Egypt’s reform program last week, unlocking roughly $2.3 billion. Central bank figures showed net foreign assets—an indicator of the banking sector’s FX position—hit an all-time high of $29.54 billion in January. Reuters
The tide shifted quickly. Sunday, the index slumped 2.5%—paring back steeper early losses that briefly topped 5% after strikes on Iran rattled Gulf markets. Losses continued, with another 0.61% shaved off Monday. Tuesday brought a 2.03% slide, as foreign investors pulled out, selling a net 1.003 billion Egyptian pounds. Reuters
Stocks slid 0.59% Wednesday, but Thursday’s bounce drove turnover up to 6.933 billion pounds on 1.763 billion shares, bumping market cap to 3.213 trillion pounds. Broader indices proved more resilient; the EGX70 and EGX100 ended Thursday just a touch under their Feb. 27 marks, a sign that selling concentrated mostly in the blue chips. ArabFinance
Egypt underperformed compared to others in the region. Saudi Arabia’s main index added 0.6% on the week. Qatar, still swinging after suspending gas exports, and the UAE, where markets were closed for two days, showed more turbulence. Reuters
“Market sentiment is likely to remain highly sensitive” to regional geopolitical developments, said Daniel Takieddine, co-founder and CEO at Sky Links Capital Group. Elsewhere in emerging markets, Yvette Babb of William Blair pointed out that frontier markets—Egypt among them—have proven able to handle foreign-exchange demand during shocks like this. Reuters
The risks are clear if the conflict stretches out. This week’s declines, said George Pavel, general manager at Naga.com Middle East, show how investors are worried about foreign direct investment, Suez Canal income, tourism, and gas supplies. Shipping giants—Maersk, Hapag-Lloyd, CMA CGM—have already diverted vessels around Africa and put a halt on trans-Suez routes. Reuters
Officials kept up efforts to calm transport fears. Suez Canal Authority chief Osama Rabie said on March 3 that vessels were moving through the canal as usual in both directions. Yet oil traders weren’t convinced—Brent crude climbed past $90 a barrel on Friday, still reflecting broader worries. Zawya
Domestically, the picture stays mixed. S&P Global reported Egypt’s February Purchasing Managers’ Index slipped to 48.9 from January’s 49.8—still under the 50 mark that signals contraction. Economist David Owen described the month as “pointed to a slowdown,” with both activity and new orders losing steam. SP Global PMI
