CIB shares lead EGX gains with 14% surge

Commercial International Bank (CIB) shares surged by more than 14% in minutes during Thursday's closing price auction session at the Egyptian Stock Exchange. The share price reached EGP 58.5 after more than 2 million shares were traded, pushing the main index up by 5.5%, the highest growth percentage since March 2020.

CIB shares hold the highest relative weight in the Egyptian Exchange main index, and the 14.4% increase in the share price propelled the main index to exceed 1000 points within a few minutes, raising questions about what occurred during the auction session.

In a press statement, the Egyptian Exchange clarified that foreign institutions recorded a net purchase of EGP 98.1 million, while local and Arab institutions recorded net sales of EGP 10 million and EGP 71.7 million, respectively. Additionally, Egyptian and Arab individual investors recorded net sales of EGP 11.8 million and EGP 4.7 million, respectively. Foreign institutions executed 17 transactions.

The Exchange stressed that it does not interfere in securities pricing during auction sessions, nor does it interfere in buy and sell orders or the direction of supply and demand forces. Its role is limited to ensuring that buy and sell orders comply with governing regulations.

It is internationally, regionally, and locally known that many investment funds and financial institutions periodically reevaluate the relative weights of their portfolio stocks, which may result in some significant purchase or sale transactions. Furthermore, some technical or algorithmic trading strategies may contribute to the observed price movement.

CIB's shares performance, coupled with the Exchange's statement, suggests a positive outlook for the market, reflecting a sustained economic recovery amid stable political conditions.