MARKET WATCH — The finish line is in sight
STOCK ANALYSIS: Mansoura Poultry (MPCO)
Written end of October 2025 for Business Monthly - November 2025 Issue
MARKET WATCH
The period from Sep. 15 to Oct. 15 was another home run for the market’s two main indices. The EGX30 rose 7.1% (up 26.6% year-to-date), while the EGX70 rose 6.4% (up 42% year-to-date). Advances (around 60% of the stocks) outnumbered declines (around 34% of the stocks). Such performance was supported by the Central Bank of Egypt’s (CBE) decision to cut interest rates further on Oct. 2 by yet another 100 basis points. This brought the total rate cuts so far into 2025 to 625 basis points.
Both market indices continued to hit all-time highs during the period, reflecting a strong momentum that is picking steam as we approach the finish line within a few weeks. Generally speaking, the top performers during the period were driven in part by some mergers and acquisitions chatter.
For instance, the top gainers were led by Mansoura Poultry (MPCO, up 62.5%), which has seen interest from a sovereign entity. Also, Cairo for Educational Services (CAED, up 58.5%) rose despite CIRA Education (CIRA, up 25%), its major shareholder, launching a mandatory tender offer (MTO) for a fraction of its stock market price. Similarly, Raya Customer Experience (RACC, up 45%) jumped to EGP10.47, surpassing the MTO price of EGP7.5 a share offered by Raya Holding (RAYA, down 4%), its major shareholder. RAYA later upped its MTO price to EGP9 a share after the independent financial advisor set the fair value of RACC at a range between EGP8-9.6 a share.
Elsewhere, Edita Food Industries (EFID, up 35%) continued on its uptrend, especially following the execution of a block trade in the market and the company delivering on its strategy to buy back shares. Meanwhile, the cement sector was buoyed in view of the peace agreement concerning Gaza in the hopes of benefiting from reconstruction projects. Unsurprisingly, Sinai Cement (SCEM, up 32%) rose given its proximity to Gaza and despite the existence of an MTO by Vicat Egypt, its major shareholder, at EGP41 a share, a 40% discount to the market price. Also, Arabian Cement (ARCC, up 20%) rose, driven by the same theme.
Also, the pharmaceuticals sector attracted attention, especially in the government-owned names, like Nile Pharma (NIPH, up 32%) and Memphis Pharma (MPCI, up 32%). But on the other end of the spectrum, Premium Healthcare Group (PHGC, down 42%) plunged after shares of its capital increase began trading in the market and ahead of news that the Attorney General froze the assets of one of the company’s major shareholders along with 46 others. The stock was moved to Schedule D with a daily price limit of +/-5%, thus putting a lid on speculation in the stock.
As for the macro picture, headline inflation came down for the fourth month in a row, registering 11.7% in September, which leaves further room for the CBE to continue its easing monetary policy. The CBE has two meetings left for this year to be held at the end of November and December to decide on the level of interest rates.
STOCK ANALYSIS
Mansoura Poultry (MPCO)
Established in 1983, Mansoura Poultry (MPCO) is today 42 years old, having become one of the leading and most well-known companies in the Egyptian poultry industry. However, its stock has been trading sideways for at least a decade before it began to show some signs of liveliness after COIVD-19. More recently, the stock was the center of attention after Future of Egypt Authority for Sustainable Development, a sovereign entity, acquired a 22.5% stake in the company. Average traded value rose by more than 16x during the period versus the prior period, with the stock rising 62.5% to EGP2.73 and doubling year-to-date to value the company at around EGP1.8 billion. Later on, the stock continued its uptrend beyond the EGP3 mark.
