MARKET WATCH: The market extended its rally; more IPOs to come
STOCK ANALYSIS: Nile Pharmaceuticals (NIPH)
Written end of May 2026 for Business Monthly - June 2026 Issue
MARKET WATCH
The market extended its rally; more IPOs to come
The period from April 15 to May 15, 2026 saw Egyptian equities extend their upward momentum, with both the EGX30 and EGX70 posting broad-based gains as investor sentiment improved further. EGX30 hit an all-time high of 54,977.01 intraday on 11 May, whereas EGX70 followed suit on 17 May, hitting 15,158.43 intraday. During the period, small-cap stocks once again outperformed, supported by higher retail participation and renewed appetite for risk-on and turnaround stories. Market activity accelerated noticeably, with advances outnumbering declines by a ratio of 7 to 1. Several stocks recorded sharp gains on the back of corporate actions.
Defensive plays, led by healthcare and education names, dominated the gainers’ list. Alexandria New Medical Center (AMES, up 101%) more than doubled during the period. The company was undergoing an EGP120-million capital increase as part of its EGP190-million capital expenditures plan to modernize some of its assets and add new ones to grow the hospital’s revenue base. Similarly, Nile Pharmaceuticals (NIPH, up 67%) was looking to double its capital to EGP1 billion. Also, Nozha International Hospital (NINH, up 55%) rallied sharply absent any material event. Meanwhile, Suez Canal Co. for Technology Settling (SCTS, up 76%) extended its recent momentum. It proposed to pay out an interim cash dividend of EGP13 a share or 96% of its distributable profits.
Real estate and tourism stocks remained in focus. Palm Hills Developments (PHDC, up 57%) advanced on news of its share buyback and a new project planned in Ras El-Hekma with an Emirati partner. PHDC later reported its net income fell 22% year-on-year to EGP1.2 billion in the first quarter of 2026 on 11% higher revenues of EGP9.35 billion. Egyptian Resorts (EGTS, up 42%) extended its rally coinciding with news of its winning an arbitration case that will return land parcels totaling around 294 thousand square meters in Sahl Hasheesh, Hurghada.
On the downside, losses were relatively limited compared to the broader market rally. Housing & Development Bank (HDBK, down 5%) saw mild profit-taking following its strong gains in the prior month, while Digitize for Investment & Technology (DGTZ, down 6%) and Dice Sport & Casual Wear (DSCW, down 7%) also corrected lower. GoGreen for Agricultural Investment & Development (GGRN, down 22%) was among the weakest performers during the period.
The market’s IPO scene is reviving with the second offering so far in 2026 by Korra Energi (KORA) whose EGP735-million IPO was oversubscribed, including both the private placement and the public tranches. The latter, 40% of the offering or EGP294 million, was oversubscribed 31.35 times, paving the way for more IPOs to hit the Egyptian Exchange throughout the remainder of the year.
From a macro perspective, the Central Bank of Egypt (CBE) kept interest rates unchanged for the second time this year, in line with market expectations. The overnight deposit and lending rates were kept at 19% and 20%, respectively. The impact of a delayed interest rate easing cycle was more than offset by rising inflation expectations which supported equity valuations. At the same time, FX flexibility and improving investor sentiment toward emerging markets will likely continue to drive the market’s future performance.
STOCK ANALYSIS
Nile Pharmaceuticals (NIPH)
Nile Pharmaceuticals (NIPH) was among the top-performing healthcare stocks during the period, rising 66.5%. The stock traded at multi-year highs during the period, pushing its year-to-date performance to +68%. The stock traded between an intraday low of EGP100.10 on Apr. 15 and an intraday high of EGP186.89 on May 12, with 18.6 million shares changing hands worth some EGP2.7 billion – an abnormally high activity by historical measures. As for valuation, the stock is now trading at a trailing 12-month price-to-earnings ratio of around 35 times, quite a premium to the pharmaceutical sector, but only 17 times its expected earnings.
