MARKET WATCH — An IPO, Cement Buzz, and a Summer Rally
STOCK ANALYSIS: Bonyan for Development & Trade (BONY)
Written end of August 2025 for Business Monthly - September 2025 Issue
MARKET WATCH
The period from Jul. 15 to Aug. 15 saw the market indices extend their gains for the second month in a row. The EGX 30 (up 4.8%) outperformed the EGX 70 (up 4.3%) by a small margin. The EGX 30 is still trying to catch up with the EGX 70 in terms of year-to-date performance, up 19.6% versus 30.3%, respectively. In terms of sector performance, most of them ended the period higher, led by building materials which in turn was driven by cement stocks. On the other end of the spectrum, shipping tailed the performance list.
The period marked the debut of Bonyan for Development & Trade (BONY) as the first initial public offering (IPO) on the Egyptian Exchange (EGX) in 2025. BONY is a real estate operating company that invests in prime real estate properties to generate rental income. BONY’s EGP1.8-billion IPO valued the company at EGP8.5 billion at its IPO price. However, at the end of its one-month stabilization fund, the stock was trading below its IPO price.
The period was also a mix bag of top performers in both the large cap and small cap camps. For instance, CIB (COMI, up 10%) started to move higher after 10 months of sideway trading. This helped drive the EGX 30 higher. On the other hand, companies like Arab Development & Real Estate Investment (ADRI, up 173%), Misr Oils & Soap (MOSC, up 140%), and Alexandria National Co. for Financial Investment (ANFI, up 105%) more than doubled during the period. The stocks rose despite their management denying any material event behind such a strong performance.
Meanwhile, cement stocks came under the limelight with merger and acquisition talks surfacing. For instance, Misr Cement - Qena (MCQE, up 49%) led the pack with its interest in acquiring a stake in yet another EGX-listed cement manufacturer, Misr Beni Suef Cement (MBSC, up 30%). Also, South Valley Cement (SVCE, up 24%) was considering acquisition offers for its 48%-owned Building Materials Industry Co. (BMIC). Elsewhere, Sinai Cement (SCEM, up 21%) which earlier this year sold its stake in Sinai White Cement is now a target for Vicat Egypt for Cement Industry, its major shareholder with a 77.6% stake, to acquire the remaining stake it does not own with the goal to delist the company. Last but not least, Arabian Cement Co. (ARCC, up 18%) continued to rise after the company said it will buy back up to 4% of its issued shares from the market.
As for the macro picture, the Egyptian pound has been gaining ground as the US dollar fell globally. The Egyptian pound rose more than 2% during the period and up almost 5% year-to-date, while the US dollar index fell almost 10%. With Egypt’s urban inflation falling to 13.9% in July, investors are now leaning more towards a speedier monetary easing by the Central Bank of Egypt (CBE) in the remaining Monetary Policy Committee meetings it has through the end of this year.
STOCK ANALYSIS
Bonyan for Development & Trade (BONY)
With an IPO price of EGP4.96 a share, BONY began trading on Jul. 22 and hit an intraday high of EGP5.15, then it was downhill from there. Although the public offering was covered 33.7x, BONY fell the following days to hit an intraday low of EGP4.25. The stock later pared some of its losses to end the period down 13%. It later rose to EGP4.50 by Aug. 21, but it was still down 9% off the IPO price. That was the last day for the public offering investors to sell back to the stock price stabilization fund at the IPO price.
