MARKET WATCH: Small caps take the lead, again
STOCK ANALYSIS: Alexandria New Medical Center (AMES)
Written end of July 2026 for Business Monthly - August 2026 Issue
MARKET WATCH
Small caps take the lead, again
The period from June 15 to July 15, 2026 saw Egyptian equities deliver a mixed performance, with the EGX30 inching up 0.5% to 52,558.4, while the EGX70 surged 8.7% to 16,790.9. The divergence reflected strong appetite for small- and mid-cap stocks, whereas large caps largely consolidated following their strong performance earlier this year. Meanwhile, advances outnumbered declines by a ratio of 5 to 1. As in recent months, stock-specific developments continued to drive market performance.
Healthcare and real estate stocks dominated the gainers’ list. Alexandria New Medical Center (AMES, up 189%) nearly tripled during the period, extending its remarkable rally and making it the second most valuable hospital operator listed on the EGX with a market cap of EGP17.6 billion, behind Cleopatra Hospitals Group’s EGP23.7 billion. Naeem Real Estate (NARE, up 95%) also posted substantial gains, while Giza General Contracting (GGCC, up 66%), El Saeed Contracting (UEGC, up 49%), El Kahera Housing (ELKA, up 47%), and United Housing (UNIT, up 44%) benefited from renewed investor appetite for construction and real estate names.
Education-related companies also attracted investors’ attention. Cairo Educational Services (CAED, up 51%) recorded one of the strongest performances during the period, while CIRA Education (CIRA, up 22%) extended its recent gains as investors continued to favor defensive growth sectors. Elsewhere, Egyptian Media Production City (MPRC, up 37%) advanced after renewed interest in media and content-related businesses, while Lecico Egypt (LCSW, up 22%) benefited from improving export prospects supported by the weaker EGP and ahead of merging three of its subsidiaries into the company.
Elsewhere, some industrial names took a front seat with strong double-digit performance. The list included Delta Printing & Packaging (DTPP, up 72%) and Al-Ahram Printing & Packaging (EPPK, up 24%) in the printing sector. Also, the list included Cairo Pharmaceuticals (CPCI, up 31%), October Pharma (up 22%), and El-Nile Co. Pharmaceuticals (NIPH, up 19%) in the pharmaceutical sector.
On the downside, several of the previous month’s top performers witnessed profit-taking. Tycoon Investments Holding (TYCN, down 24%) pared some of its earlier gains after nearly doubling in the prior period. Future Care for Medical Industries (FCMD, down 15%) and Orascom Construction (ORAS, down 10%) also corrected lower, while Sidi Kerir Petrochemicals (SKPC, down 9%) remained under pressure amid weaker petrochemical prices in view of weaker oil prices during the period. Recently listed Korra Energi (KORA, down 3%) traded lower as the initial post-listing enthusiasm faded.
From a macro perspective, easing inflationary pressures continued to support expectations of further monetary easing by the Central Bank of Egypt (CBE), but the market is putting this off towards the end of the year. However, investors remained selective amid lingering geopolitical uncertainties and continued to favor domestically oriented small- and mid-cap companies over index heavyweights.
STOCK ANALYSIS
Alexandria New Medical Center (AMES)
Alexandria New Medical Center (AMES) was the standout performer during the period from June 15 through July 15, 2026, with its stock soaring 189%. The rally was fueled by exceptional retail demand following the stock’s strong gains in the preceding month, extending one of the Egyptian Exchange’s strongest momentum stories this year. The stock traded at successive all-time highs throughout the period as trading volumes surged significantly. Despite the absence of any material corporate disclosures, investors continued to favor the healthcare sector, with AMES emerging as one of the market’s best-performing small-cap stocks year-to-date.
