El-Halfawy expected the Central Bank of Egypt to move toward additional interest rate cuts during the first half of 2026, by nearly 200 basis points, alongside continued declines in inflation.
He projected that interest rates would continue to fall
throughout 2026 by between 600 and 700 basis points, reaching around 15 percent
by the end of the year.
He said that lower interest rates increase direct investment
in the stock market, whether through investment funds, real estate, or stocks.
He added that this would boost the EGX and enable it to reach new record highs
at both the index and stock levels.
El-Halfawy stated that interest rate reductions remain the
most influential factor driving investment in the stock market. He noted that
during 2025, total rate cuts reached 725 basis points across five meetings of
the Central Bank of Egypt, coinciding with a notable decline in inflation levels.
He recommended that investors in the EGX during 2026 focus
on companies with sound governance practices, while closely monitoring market
developments through corporate news and disclosures. He also encouraged
investors to benefit from the listing of government owned companies on the
stock market.
El-Halfawy urged investors to diversify their portfolios,
stressing that diversification is not aimed at achieving exceptional profits.
He described it as a defensive strategy to preserve capital, reduce risks, and
pursue reasonable and stable long term returns while benefiting from different
investment opportunities.
He confirmed that a suitable investment portfolio for any
client should include bank stocks, telecommunications, and renewable energy
companies. He added that portfolios should also include real estate investment
fund certificates, government bonds, and gold funds.
El-Halfawy described 2025 as an exceptional year for the
EGX, during which the market reached major record highs and placed Egypt at the
forefront of Middle East and North Africa markets.
He said that the market capitalization of the EGX increased
by around EGP 829 billion during 2025 trading sessions, reaching approximately
EGP 2.998 trillion.
He noted that the benchmark EGX 30 index rose by 40.65
percent to close at 41,828.97 points.
He added that the EGX 70 Equal Weight Index for small and
medium sized companies climbed by 61.19 percent to close at 13,125.33 points.
El-Halfawy stated that the EGX 100 Equal Weight Index
recorded growth of 55.34 percent to close at 17,425.88 points.
He pointed out that the EGX 30 Capped Index increased by
40.02 percent to close at 51,568.39 points.
He added that the Tamayuz Index surged sharply during the
year, recording a strong rise of 113.27 percent to close at 21,087.55 points.