MARKET WATCH — Broad-based gains on a war-off mode
STOCK ANALYSIS: Suez Canal Co. for Technology Settling (SCTS)
Written end of April 2026 for Business Monthly - May 2026 Issue
MARKET WATCH
Broad-based gains on a war-off mode
The period from March 15 to April 15, 2026 saw the EGX regain upward momentum, with both the EGX30 (up 10.5%) and EGX70 (up 6.3%) posting solid gains as investor sentiment improved following the prior month’s consolidation. Geopolitical risks were reduced with the 2-week ceasefire between the United States and Iran. Market breadth turned positive, with advances outpacing declines by a ratio of 3 to 1. This was supported by renewed interest in the financial and real estate sectors, with continued rotation into small- and mid-cap names.
Healthcare and tourism names led the rally. October Pharma (OCPH, up 59%) surged amid renewed interest in defensive healthcare plays, while Egyptian Resorts Co. (EGTS, up 44%) rallied ahead of its appeal hearing session on May 5. Also, real estate stocks posted broad-based gains. Arab Real Estate Investment (RREI, up 36%), Arab Developers Holding (ARAB, up 21%), and Mena Touristic & Real Estate Investment (MENA, up 23%) benefited from a stronger US dollar. Meanwhile, dual-listed Orascom Construction (ORAS, up 25%) extended its rally on the back of strong 2025 results, reflecting higher backlog visibility and continued project awards.
Banks, meanwhile, continued to attract flows. Suez Canal Bank (CANA, up 44%) and Housing & Development Bank (HDBK, up 40%) advanced on improved earnings visibility in a high interest rate environment. Also, CIB (COMI, up 21%) rebounded following the prior month’s correction, supported by renewed foreign interest given its heavy weight in the EGX30. Similarly, Credit Agricole Egypt (CIEB, up 21%) and Abu Dhabi Islamic Bank - Egypt (ADIB, up 21%) posted solid gains, reflecting improving sentiment toward the sector.
The period also saw the strong participation of smaller financial and investment companies, including Alexandria National Co. for Financial Investment (ANFI, up 35%) and Arab Moltaqa Investments (AMIA, up 35%). This coincided with increased retail activity and a pickup in trading volumes as the market shifts towards more opportunistic strategies. On the downside, losses were relatively contained. Alexandria Mineral Oils (AMOC, down 11%) corrected following its recent rally, while Macro Group (MCRO, down 15%) fell amid continued selling pressure. Elsewhere, Sidi Kerir Petrochemicals (SKPC, down 5%) and Misr Beni Suef Cement (MBSC, down 6%) also saw mild pullbacks.
From a macro perspective, at its 2 April meeting, the Central Bank of Egypt left policy rates unchanged at 19% for deposits and 20% for lending. The CBE cited elevated global uncertainty, commodity price shocks, and upside inflation risks—a move broadly anticipated by the market. Reflecting the impact of ongoing regional tensions, the CBE also trimmed its FY2025/26 real GDP growth forecast from 5.1% to 4.9%. Still, persistent inflationary pressures and FX volatility remain the key risks, suggesting a more selective market environment going forward.
STOCK ANALYSIS
Suez Canal Co. for Technology Settling (SCTS)
Suez Canal Co. for Technology Settling (SCTS), owner of 6 October University, saw its market cap multiply on high trading volumes. The stock rose 43% during the period, jumping from EGP264 to EGP376.66. However, the company’s management denied the existence of any material event that would have driven the stock higher. Later on after the end of this period, the company’s management revealed a proposed cash dividend distribution based on its 6-month financials, amounting to EGP1.2 billion or EGP13 a share and implying a 2% yield at the time of the announcement. The stock continued to rally later on to an intraday high of EGP829.02 on Apr. 23, valuing the company at an astronomical EGP75 billion.
