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Small-Caps Extend EGX Rally as Benchmark Retreats Below 55,000
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The Middle East Observer
Smaller companies are appreciating much faster than the largest constituents, allowing overall market value to rise even when the benchmark retreats.
The divergence extends a broader rotation towards smaller companies after an earlier rally in large-cap shares.
Large advances in selected smaller companies can have a substantial effect on equal-weighted indices even when market breadth is more balanced.
EGP4tn Market Value Raises the Stakes for ReformThe increase in listed market capitalisation above EGP4tn marks a significant expansion in the nominal size of Egypt’s equity market.
The challenge is therefore shifting from increasing headline market value towards building a broader institutional market with larger free floats, more issuers and a wider range of investable instruments.