Today: Ascom approved an acquisition of a 90% stake in Raya Holding's logistics subsidiary Ostool, Tawasoa for Factoring moved to the EGX's main market and announced expansion plans, while Egypt’s non-oil private sector remained in contraction for a fifth consecutive month in May. Let's dive in.

🔔 EGX30 ended -0.7% by market close yesterday at 52,564 points, the EGX70 rose 0.7% to 15,210 points, and the EGX100 rose 0.3% to reach 21,117 points.

💸 The number of transactions reached 212,779 spread across 4,512,597,960 stocks leading to a turnover of EGP 9.836 billion.

🏷️ Local investors were the only net buyers. 

📈 Top gainers for the market as a whole included Subscription Rights Of Aspire Capital (+96.4%), Aspire Capital (+20.0%), Asec Company for Mining (+14.1%).

📉 Top losers for the market included Misr Duty Free Shops (-5.9%), Saudi Egyptian Investment & Finance (-5.7%), and Amer Group Holding (-4.8%).

⬆️ Top gainers for EGX30 included Kima (+3.4%), Arabian Cement (+2.6%), and Ibnsina Pharma (+2.1%).

⬇️ Top losers for EGX30 included Heliopolis Housing (-3.1%), Beltone Holding (-2.5%), and E-Finance (-2.0%).

Other Important Stats: 

🧈 24K Gold reached EGP  7,554 per gram, down 0.8% day-on-day and down 5.1% month-on-month.

💲 The USD reached EGP 51.89 at the National Bank of Egypt.

Asec Company for Mining “Ascom” (ASCM) is set to significantly expand its logistics footprint following board approval to acquire a commanding 90% stake in Ostool Transport and Logistics, according to a regulatory filing sent to the EGX.

Structure and valuation:

The transaction involves Ascom purchasing 77,941,464 shares of the unlisted transport firm from Raya Holding. Key financial details of the agreement include:

Total transaction value: EGP 641 million.

Agreed purchase price: EGP 8.224 per share.

Assessed fair value: EGP 6.253 per share, as determined by an independent valuation study conducted by Fact Financial Advisory.

Despite the purchase price reflecting a premium over the independent valuation, Ascom’s Board of Directors unanimously approved both the fair value study and the accompanying auditor's report.

Strategic context and financial background:

This definitive approval formalizes a strategic move that has been in the pipeline for nearly a year. The board's decision directly activates a preliminary agreement and initial purchase offer originally greenlit by Ascom inJune of 2025. By integrating Ostool's land transport capabilities, the mining firm looks poised to streamline its supply chain and enhance its broader operational logistics.

For the seller, the divestment marks the offloading of a steady revenue generator. It is important to note that Ostool contributed 4.9% of Raya Holding’s revenues in Q1 2026, bringing in EGP 492 million prior to the sale.

Market reaction:

Ascom’s share price rose 14.1% by the end of yesterday’s trading session following the news to become the market’s third top gainer. This brings its gains since the beginning of the year to 25.9%, and its gains over the past 12 months to 65%.

Tawasoa for Factoring (TWSA) is targeting a financing portfolio of between EGP 240 million and EGP 260 million by the end of 2026, more than double the EGP 120 million recorded at the close of last year, following its recent debut on the EGX’s main market.

Speaking to Mubasher following the company's transition to the Egyptian Exchange's main market, Co-founder and Chief Operating Officer Hussein Sedky said the company is pursuing an expansion strategy aimed at growing both its geographic reach and financing activities.

Expansion plans:

As part of that strategy, Tawasoa is expanding into Alexandria and Menofia and intends to enter governorates in Upper Egypt by 2028.

In separate remarks to Al Arabiya, Sedky said the company plans to direct proceeds from its recent capital increase toward expanding its client base and increasing credit limits for existing customers, supporting growth in its financing portfolio.

He added that the factoring industry remains one of the fastest-growing segments of Egypt’s non-banking financial sector, with demand for working capital financing continuing to rise.

Strong first-quarter performance:

The company’s growth ambitions come amid strong momentum in the first quarter of 2026.

Investor Relations Manager Basma Moussa told Mubasher that Tawasoa’s financing portfolio increased by 69% year-on-year during the quarter, while total credit facilities tripled compared with the same period a year earlier.

Separate financial statements showed the company’s net profit increased by 6.7% year-on-year to EGP 3.67 million in the first quarter of 2026, compared with EGP 3.44 million in the corresponding period of last year.

The company’s sales climbed to EGP 11.88 million during the quarter, up from EGP 8.77 million a year earlier.

New financing product under development:

Sedky also told Al Arabiya that Tawasoa is working on launching a Shariah-compliant financing product after obtaining board approval and preliminary regulatory clearance.

The product is currently under final review with the Financial Regulatory Authority and is expected to help the company broaden its customer base and tap into additional demand for Islamic financing solutions.

Recent stock performance:

Tawasoa's shares have gained 197.2% since the start of 2026, reflecting strong investor appetite ahead of the company's transition to the Egyptian Exchange's main market.

Today:

Rameda - distribution date for EGP 0.030 per share. The record date was May 31.

Elsewedy Electric - distribution date for EGP 1.85 per share. The record date was June 1st.

24 June:

Abu Qir Fertilizers - distribution date for EGP 1.30  per share. The record date was April 19.

📉 Egypt’s non-oil private sector extended its downturn in May, with the S&P Global PMI rising slightly to 47.1, sitting below the 50.0 neutral threshold for the fifth straight month as business conditions contracted solidly. The PMI scale uses 50.0 as the neutral threshold — readings below 50 indicate contraction, while above 50 signal expansion in private sector activity. May saw steep contractions across output and new orders due to elevated inflation deterring customers, while employment cuts accelerated to their fastest pace in nearly six years alongside worsening supply chain disruptions driven by ongoing global shipping challenges. 

📝 The Sovereign Fund of Egypt is planning to acquire a 10% to 20% stake in two upcoming industrial investment funds to be established alongside CI Capital (CICH) and Cairo Capital, aiming for a combined investment target of EGP 5 billion (around USD 96.4 million), according to anonymous officials speaking to Asharq. These funds, which are expected to submit their regulatory paperwork this month and launch operations by September, will primarily target high-growth industrial firms with strong export potential. This move aligns with a broader state strategy to shift investment liquidity away from real estate or gold and into productive sectors, helping Egypt boost its industrial output to 20% of GDP by 2030.