
By Sama Marwan,
Hermes Securities Brokerage topped the list of brokerage firms in the Egyptian Stock Exchange for January in terms of transactions by Egyptian investors, recording a trading value of EGP 13.61 billion, securing a 9.9% market share.
Top Brokerage Firms for Egyptian Investors:
- Second place: Thndr Securities Brokerage with a 9.7% market share and transactions worth EGP 13.393 billion.
- Third place: Mubasher Securities Brokerage, capturing 7.3% market share through total transactions of EGP 10.04 billion.
- Fourth place: Ostoul Securities Brokerage, holding a 6.2% market share with trades amounting to EGP 8.47 billion.
- Fifth place: Pioneers Securities Brokerage, achieving a 5.8% market share with transactions worth EGP 7.93 billion.
Arab Investors’ Transactions:
- Top firm: CIB Securities Brokerage, leading with EGP 1.63 billion in transactions and an 18.9% market share.
- Second place: Hermes Securities Brokerage, securing a 16.9% market share with EGP 1.45 billion in trades.
- Third place: Beltone Securities Brokerage, capturing 9.6% market share with EGP 832 million in transactions.
- Fourth place: Mubasher Securities Brokerage, holding 7.8% of the market with trades worth EGP 670 million.
Foreign Investors’ Transactions:
- Top firm: EFG Hermes Securities Brokerage, leading with EGP 5.7 billion in transactions and a 53.5% market share.
- Second place: CIB Securities Brokerage, securing a 22.5% market share with EGP 2.42 billion in trades.
- Third place: Beltone Securities Brokerage, capturing 7.5% market share with EGP 810 million in transactions.
- Fourth place: Arqaam Securities Brokerage, holding 7.1% of the market with EGP 770.8 million in trades.
EFG Hermes Research: Economic & Market Projections
According to EFG Hermes Research, Egypt possesses strong competitive advantages for global capital movement compared to similar emerging markets. However, the biggest challenge for the Egyptian market remains the lack of a fundamental investment catalyst, particularly given structural challenges in the stock market.
Economic Outlook:
- The Egyptian pound is expected to trade between EGP 49.11/USD in 2025 and EGP 50.58/USD in 2026.
- The Central Bank of Egypt is projected to cut interest rates by 500 basis points in 2025 and repeat the cut in 2026, bringing rates down to 18.3% by the end of 2026.
- GDP Growth Projections:
- 2024/2025: Expected at 3.7%, up from 2.4% in the previous fiscal year.
- 2025/2026: Expected to rise further to 4.7%.
Foreign Direct Investment & Suez Canal Revenues:
- FDI surged to $45.6 billion in 2023 but is forecasted to drop to $11.7 billion in 2025 and $12.7 billion in 2026, compared to $9.7 billion in 2023.
- Suez Canal revenues are anticipated to begin recovering in 2026 following a decline in 2025.
Stock Market Performance & Sectors Driving Growth:
- The Egyptian stock market surged by 24% in 2024, driven by the devaluation of the Egyptian pound, which shifted investor interest towards stocks benefiting from currency movements.
- The EGX30 rally was mainly led by:
- Consumer goods
- Healthcare
- Industrials
- Banks (partial impact)
- Consumer goods companies sustained strong profit growth due to higher product prices and stable demand.
- Pharmaceutical firms benefited from regulatory approvals for price adjustments.
Mergers & Acquisitions as a Market Driver:
- M&A activity will remain a key market driver despite potential long-term concerns about market dynamics.
- The Egyptian market urgently needs asset sales and new IPOs to sustain growth.