CAIRO, March 7, 2026, 11:16 EET
The EGX30 in Egypt dropped 3.5% last week—its sharpest fall since June. After tumbling for four straight days, the index finally turned around on Thursday and climbed 2.29% to finish at 47,516.44. Commercial International Bank surged 3.7% and was the main force behind the move higher. Reuters
The decline stands out as Cairo’s stock exchange works to ramp up liquidity and bring in fresh capital—right as tensions in the region unsettle investors. On March 1, the Egyptian Exchange introduced EGX30 futures, giving traders a tool to hedge swings or bet on the index’s moves. At the same time, authorities finished a fair-value review of state-owned Banque du Caire, moving the long-anticipated IPO another step forward. ArabFinance
A few days earlier, the outlook looked steadier. The IMF completed two reviews of Egypt’s reform efforts last week, freeing up about $2.3 billion. Central bank data showed net foreign assets—used to gauge the banking sector’s FX stance—reaching a record $29.54 billion in January. Reuters
Momentum reversed in a hurry. On Sunday, the index dropped 2.5%, clawing back from sharper intraday losses that crossed 5% after the Iran strikes jolted Gulf markets. It didn’t stop there—Monday saw another 0.61% dip. Then on Tuesday, a 2.03% fall as foreigners withdrew, unloading a net 1.003 billion Egyptian pounds. Reuters
Stocks lost 0.59% on Wednesday. Then Thursday’s rebound lifted turnover to 6.933 billion pounds across 1.763 billion shares, pushing market capitalization to 3.213 trillion pounds. The broader indices held up better—EGX70 and EGX100 wrapped Thursday only slightly below their Feb. 27 levels, pointing to most of the selling hitting blue chips. ArabFinance
Egypt lagged behind regional peers. Saudi Arabia’s main index booked a 0.6% gain for the week. Qatar struggled with volatility after halting gas exports, while the UAE saw choppier trading as its markets shut down for two days. Reuters
Daniel Takieddine, co-founder and CEO at Sky Links Capital Group, said, “Market sentiment is likely to remain highly sensitive” as regional geopolitical moves continue to drive volatility. Yvette Babb at William Blair noted that some frontier markets, including Egypt, have weathered foreign-exchange pressures in situations like this. Reuters
If the conflict drags on, the dangers are unmistakable. “Investors are getting nervous about foreign direct investment, Suez Canal revenue, tourism, and gas flow,” said George Pavel, general manager at Naga.com Middle East, pointing to this week’s losses. Major shipping operators—Maersk, Hapag-Lloyd, CMA CGM—have rerouted ships around Africa, suspending traffic through the Suez. Reuters
Officials continued attempts to reassure over transport issues. On March 3, Suez Canal Authority chief Osama Rabie insisted ship traffic was normal in both directions. But oil traders didn’t buy it—Brent crude topped $90 a barrel Friday, showing those market jitters linger. Zawya
The outlook at home remains muddled. S&P Global’s February Purchasing Managers’ Index for Egypt dipped to 48.9, down from 49.8 in January—leaving it below the 50 threshold that indicates contraction. “Pointed to a slowdown,” economist David Owen said, noting both activity and new orders softened during the month. SP Global PMI
