MARKET WATCH — The strong momentum continues
STOCK ANALYSIS: Qalaa Holdings (CCAP)
Written end of December 2025 for Business Monthly - January 2026 Issue
MARKET WATCH
The strong momentum continues
Both EGX30 and EGX70 continued to hit new all-time highs. The former rose 5.3% to 42,305, while the latter rose 7.1% to 13,007, thus extending their year-to-date gains to 42% and 60%, respectively. For the EGX30, the year 2025 could be the second largest performance in the last 8 years, but the EGX70, it’s in 4 years.
As expected, the top gainers during this period were led by small caps. However, one name stood out: El-Obour Real Estate Investment (OBRI), which skyrocketed by 131%, valuing the company at close to EGP1.5 billion before extending its bull run even further. The company had just reported its 9-month results where net earnings jumped more than 200% year-on-year due to booking 3.4 times higher revenues, mostly coming from its contracting business in Saudi Arabia. Also, the stock saw some movement in its shareholder register, which may explain the steep rise in the stock price.
Elsewhere, corporate actions seem to have been driving the performance of several stocks. For instance, Macro Group (MCRO) which just finalized its EGP570-million capital increase saw its stock jump 60%. Similarly, Atlas Investment & Food Industries (AIFI) saw its stock rise 44% before the company revealed its plans to undertake a 77% capital increase to raise EGP50 million in equity capital.
Also, the latest company to go public saw its stock advance further. Tawasoa Factoring (TWSA), listed on the small and medium enterprises exchange, rose 35% during the period. Not only that, but even some USD-denominated stocks rose by a good margin. Indeed, Maridive & Oil Services (MOIL), jumped 28% during the period. The company has written off its investment in Valentine Maritime, setting the scene for earnings to recover over the coming quarters as seen in its third-quarter results, turning to a net profit from a net loss in the prior quarter.
Meanwhile, mergers and acquisitions deals continue to hit the headlines every now and then. The latest came from a company controlled by Abu Dhabi Ports which is interested in upping its stake to 90% but ideally to a minimum of 51% in Alexandria Container & Cargo Handling (ALCN). The mandatory tender offer was priced at EGP22.9 a share, but the stock traded above that level ever since, suggesting the acquirer may raise the deal price.
On the negative side, cement stocks pulled back, erasing some of their earlier gains. For instance, Misr Beni Suef Cement (MBSC, -14%), Sinai Cement (SCEM, -10%), Suez Cement (SUCE, -10%). The only exception was South Valley Cement (SVCE, +14%).
As for the macro picture, the EGP continued to strengthen against the USD as the Fed cut rates by 25 basis points, while the Central Bank of Egypt (CBE) maintained rates. Expectation is for the CBE to make one final rate cut in 2025 before year-end.
STOCK ANALYSIS
Qalaa Holdings (CCAP)
Qalaa Holdings (CCAP) came back in vogue, having staged a strong comeback. The stock jumped 45% during the period to EGP3.92. However, the ride was more exciting than it seems; the stock traded between a low of EGP2.20 and a high of EGP4.27—a 94% range in just seven trading sessions. The company just executed its long-awaited capital increase as part of its recapitalization. Certain shareholders had opted to buy the company’s debt at an implied steep discount to the share’s par value with the goal to convert it back into shares at a premium. Hence, a total of 1.8 billion shares were issued, raising the company’s market cap to more than EGP14 billion.
