The indices of the Egyptian Exchange (EGX) have recently experienced a significant surge. As a result, the main index has been reaching new historical records on a daily basis, ultimately reaching its all-time high at 23,000 points. This increase in performance can be attributed to a change in investor behavior, as well as their increased loyalty to the financial market as a means of hedging against inflation and responding to movements in the exchange rate between the pound and the dollar.
Daily News Egypt has been monitoring the prices of shares listed on the main market of EGX, revealing the top-performing stocks from January to October of this year.
The list includes five stocks: Misr Fertilizer Production (MOPCO), General Co. for Ceramic and Porcelain Products (SHEENI), Ezz Steel, Memphis Pharmaceuticals and Chemical Industries, and Delta Sugar.
Each of these stocks has attracted investors during the monitoring period due to fundamental events at the company level or the sector they belong to.
MOPCO stocks
MOPCO shares were able to jump from EGP 153.05 at the end of January 2023 to EGP 569.68 at the end of October 2023, recording a growth rate exceeding about 270%, benefiting from the momentum witnessed by the petrochemical sector in the Egyptian stock market. That is the result of the vital sector’s role in relying on export activity and providing dollar returns that enable companies to withstand the decline in the price of the currency.
MOPCO benefited mainly from the decline in the price of the Egyptian pound against the dollar. This was evident in an increase in its half-term profits, due to its possession of net financial assets in foreign currency.
The company is anticipating the merger with its subsidiary, “Egyptian Nitrogen Products,” on the basis of book value. Although the merging company owns about 99.9% of the company, news of the merger would affect the mentality of stock traders on the Egyptian Exchange.
SHEENI stocks
The shares of General Co. for Ceramic and Porcelain Products increased by approximately 258%, closing at EGP 13.06 in October of the current year. It was EGP 3.65 at the end of January.
This increase in share value occurred despite the challenges facing SHEENI’s business results and the increase in carried forward losses from half of the equity. This situation raises questions about whether the company will continue operating.
However, the company managed to turn its losses into profits during the fiscal year 2022-2023. It recorded a net profit of EGP 9.94m from July 2022 to the end of June 2023, compared to losses of EGP 68.97m during the same period in the previous fiscal year.
To facilitate this positive shift, the company implemented several reform decisions. It opened a documentary approval for €230,000 to perform overhauls on the presses in the ceramic and porcelain factories. Additionally, a documentary approval for $35,000 was obtained to purchase raw materials for the porcelain factory from the Portuguese company Mota.
Ezz Steel stocks
Ezz Steel shares experienced a significant increase, with an estimated growth rate of 218.5% during the first 10 months of this year. The stock price rose from EGP 23.7 at the end of last January to EGP 75.5 at the end of October, placing it among the stocks that have risen in value this year.
Memphis Pharmaceuticals and Chemical Industries stocks
Memphis Pharmaceuticals shares increased by 194.9% during the period from January to October 2023, rising to EGP 56.04 compared to EGP 19.
The company’s profits jumped by 96% during the first quarter of the year, which was reflected in the stock’s performance, as its net profit increased to EGP 24.76m from the beginning of July until the end of September 2023, compared to profits worth EGP 12.66m during the same period of the previous year.
Delta Sugar Company stocks
Delta Sugar shares benefited from the global sugar crisis in 2023, as sugar prices rose by 60%. The stock price at the end of October reached EGP 64.18, compared to EGP 24.21 at the end of January.
The company took advantage of the sugar crisis and the production pressures it faced in 2023 to increase its revenues through the price increase. As a result, it achieved a profit increase of over 100% in the first half of the year. It emphasized that it maintains a strategic stock of sugar that is sufficient until April 2024.
During the first half of this year, the company’s consolidated net profits saw a 100% increase, surpassing EGP 1.08bn compared to around EGP 544m in the same period last year. This growth was attributed to customer diversification, which fosters competition and prevents monopolization. It also enabled rapid distribution and selling of the product at an appropriate economic price.
