Written end of February 2026 for Business Monthly - March 2026 Issue
MARKET WATCH
Gaining momentum
The period from Jan. 15 to Feb. 15, 2026 saw both the EGX30 (up 20.7%) and EGX70 (up 7.1%) post strong gains as investor appetite continued to be positive for the second month in a row. Large caps outperformed small caps again as foreign investors turned positive on the market. The rally was driven by a combination of earnings momentum, sector-specific catalysts, and continued positioning amid the current easing cycle.
Telecom Egypt (ETEL, up 66%) was among the top performers during the period. Recently, ETEL and the three other mobile operators were allocated new spectrum for a total of USD3.5 billion, doubling mobile spectrum capacity. Elsewhere, Egypt Poultry (EPCO, up 60%) surged as a high-net-worth investor increased his stake in the company from 7.85% to 12.6% before cutting it in half to 6% a few days later for a handsome profit. Also, nitrogen fertilizer producer Abu Qir Fertilizers (ABUK, up 44%) rallied on firmer global urea prices.
Consumer finance and fintech names were also in focus. Valu (VALU, up 33%) extended gains on expectations of stronger loan growth in a lower-rate environment, while Fawry (FWRY, up 31%) advanced after the Egyptian American Enterprise Fund reduced its stake in the company from 6.1% to 4.4% through an accelerated book building mechanism. Meanwhile, EFG Holding (HRHO, up 27%) benefited from stronger capital markets activity and renewed trading volumes, helped in part by VALU’s stock advance. HRHO was the lead manager for Gourmet Egypt’s (GOUR) IPO, the first to hit the market in 2026. Also, Raya Holding (RAYA, up 31%) continued its recent bull run, supported by improving sentiment toward diversified investment platforms.
Real estate stocks staged a strong comeback, led by TMG Holding (TMGH, up 20%) which recently attracted attention with its promotion from the small cap to the mid cap segment within the FTSE Russell Global Equity Index Series (GEIS). This helped the Egyptian Exchange meet the required number of companies that maintain its classification as an emerging market, in addition to CIB (COMI, up 18%). Also, Madinet Masr (MASR, up 31%) and Heliopolis Housing & Development (HELI, up 31%) rallied, catching up to the rest of the sector as investors positioned for easing financing conditions.
Among industrials, Orascom Construction (ORAS, up 25%) gained on strong 2025 results that came ahead of market expectations. Rameda (RMDA, up 24%) advanced after LVP Pharma appeared for the first time on the company’s shareholder register with a 5.5% stake. Later, the new shareholder upped its stake to 11.8%.
From a macro perspective, improving inflation dynamics gave room for the Central Bank of Egypt (CBE) to cut interest rates by 100 basis points in its first meeting this year. This low-interest rate environment continued to support equity valuations, particularly growth-oriented and rate-sensitive sectors.
STOCK ANALYSIS
Gourmet Egypt (GOUR)
Gourmet Egypt (GOUR) became the first initial public offering (IPO) to hit the Egyptian Exchange in 2026. The specialty food retailer floated a minority stake (47.6%) through a private placement and public offering, attracting solid institutional demand. The offer was priced at EGP6.9 a share, the upper limit of the IPO price range, reflecting strong demand for the IPO. The stock rose the maximum allowed limit on its first trading day (Feb. 10), up 40%, then hitting an all-time intraday high of EGP11 the next day, 59% above the IPO price.
