MARKET WATCH — A strong finish to the year, a diverging start to the new one
STOCK ANALYSIS: CIB (COMI)
Written end of January 2026 for Business Monthly - February 2026 Issue
MARKET WATCH
A strong finish to the year, a diverging start to the new one
The year 2025 saw EGX30 deliver a 5-year winning streak (up 41%) and EGX70 a 6-year winning streak (up 61%). Egyptian stocks extended their rally into year-end before entering the new year on a firmer footing. The EGX30 posted solid gains during the period from Dec. 15, 2025 to Jan. 15, 2026, while EGX70 pared some of its earlier gains, underperforming EGX30 so far into the new year. The rally was skewed toward select stocks where company-specific news and positioning drove outsized moves.
Another notable feature of the period was the continued divergence in investor preferences, with flows favoring fundamentally-driven names over momentum trades. Year-to-date through mid-January, market performance appears increasingly selective, suggesting investors are becoming more discerning after several years of broad-based gains.
Certain small- and mid-cap stocks led performance during the period. Arab Co. for Asset Management & Development (ACAMD, up 32%) was amongst the gainers amid improving sentiment toward real assets. Cement stocks also staged a notable comeback after a weak prior month, with Misr Cement Qena (MCQE, up 30%) and Suez Cement (SUCE, up 29%) recovering sharply as investors repositioned into the sector on expectations of rising sales volume in view of reconstruction efforts around the region.
Financials were another key contributor to market strength. Prime Holdings(PRMH, up 28%). Meanwhile, banks posted healthy gains, led by Egyptian Gulf Bank (EGBE, up 19%), CIB (COMI, up 13%), Abu Dhabi Islamic Bank Egypt (ADIB, up 13%), and Suez Canal Bank (CANA, up 9%). The moves reflected improved sentiment toward the banking sector, supported by expectations of declining interest rates and resilient balance sheets.
Among large caps, Egypt Aluminum (EGAL, up 16%) benefited from firmer global aluminum prices and continued optimism around export-linked earnings. Raya Holding (RAYA, up 13%) extended its gradual recovery as investors reassessed valuations of diversified investment platforms.
On the downside, profit-taking was evident in several names that had previously outperformed. Alexandria Containers Handling (down 15%) fell as the stock consolidated after trading above its mandatory tender offer price (EGP22.99 a share) in prior weeks. Similarly, Canal Shipping Agencies (CSAG, down 17%) corrected lower. Elsewhere, Eastern Company (EAST, down 14%) pulled back amid weaker sentiment toward defensive consumer names. Beltone Holding (BTFH, down 14%) and Raya Customer Experience (RACC, down 14%) also saw notable pullbacks during the period.
From a macro perspective, market sentiment remained supported by expectations of an easing monetary cycle in Egypt in 2026, following signs of disinflation and relative FX stability. This backdrop continued to underpin risk appetite for Egyptian stocks, particularly financials and asset-backed stocks, as investors positioned for lower rates and improving liquidity conditions.
STOCK ANALYSIS
CIB (COMI)
Commercial International Bank (COMI) came back in vogue, rising 13% during the period from Dec. 15, 2025 to Jan. 15, 2026 and extending its year-to-date gains to 18% through Jan. 15, 2026. The stock’s performance reflects renewed foreign investor interest, supported by resilient and all-time high earnings, strong capital adequacy, and attractive relative valuation within the banking sector. The stock continued to register all-time highs throughout the new year. As the largest constituent of the EGX30, COMI continues to play a pivotal role in shaping index performance, with incremental flows into the stock which translated into broader market upside.
