Egypt’s Stock Exchange Slides 2.73% as Foreign Selling Deepens

Egypt’s stock market suffered a sharp selloff on Wednesday, with the benchmark index tumbling 2.73% amid heavy foreign investor outflows and escalating geopolitical tensions across the region.

The decline wiped out approximately EGP 75.6 billion in market capitalization, bringing the total value of listed shares down to EGP 3.224 trillion by the close of trading. The downturn was broad-based, with nearly 85% of traded stocks, 219 in total, ending in the red, underscoring the depth of the correction.

Foreign investors were net sellers to the tune of EGP 191.9 million, intensifying pressure on equities already rattled by fears of a potential U.S. military strike on Iran and the risk of wider regional instability.

Losses were led by blue-chip stocks, most notably Commercial International Bank, the market’s largest constituent by weighting, which slid nearly 4%. The stock’s decline exerted significant downward pressure on the benchmark.

Other major decliners included:

EFG Holding (-3.89%)

Beltone Holding (-4.46%)

Talaat Moustafa Group (-3.99%)

Palm Hills Developments (-2.81%)

e-finance for Digital and Financial Investments (-3.26%)

Fawry (-2.15%)

Market analysts described the selloff as a combination of external shocks and technical correction following months of strong gains.

Geopolitical Anxiety and Currency Pressure

The downturn in equities coincided with renewed pressure on Egypt’s currency. The Egyptian pound weakened sharply during Wednesday’s session, falling by 23 piasters in a single day against the U.S. dollar.

According to data from the National Bank of Egypt, the dollar was quoted at EGP 48.08 for buying and EGP 48.18 for selling, compared with the previous session’s close.

Analysts say the currency move reflects broader risk aversion among foreign investors, who are recalibrating exposure to emerging markets amid heightened geopolitical uncertainty and expectations that U.S. interest rates will remain elevated for longer.

Despite the sharp drop, some market strategists urged caution against overinterpreting the selloff.

Ibrahim El-Nemr, head of technical analysis at Naeem Financial Investments told Bloomberg that the decline is a “natural correction” following the market’s recent record-breaking rally. He noted that while geopolitical developments have accelerated the retreat, the medium-term trend remains upward.

The benchmark index, he added, is expected to test support levels near 47,300 points in the coming sessions.

Echoing that view, Amr El-Alfi, head of equity strategies at Thndr Securities Brokerage said to Bloomberg that the downturn largely to profit-taking after the market’s exceptional run. He pointed to a confluence of global caution, particularly around U.S. monetary policy, and regional security concerns as catalysts for Wednesday’s selling pressure.

Even after Wednesday’s losses, Egypt’s main index remains up roughly 17% since the beginning of the year, buoyed by reform-driven optimism, corporate earnings growth, and sustained domestic participation.

The resilience of year-to-date performance suggests that while short-term volatility may persist, investors have yet to fully retreat from Egypt’s broader recovery narrative.