EGX Stock Market Glossary

Plain-language explanations of the key Egyptian stock-market terms — from support & resistance and P/E to IPOs, rights issues and T+0. Tap any term for a full explanation with examples.

Technical analysis

Support & Resistance

Support is a price level where buying tends to halt a decline; resistance is a level where selling tends to cap a rise.

Relative Strength Index (RSI)

A momentum oscillator from 0 to 100 measuring the speed and strength of price moves — above 70 is overbought, below 30 oversold.

Moving Average

The average closing price over a set number of sessions, smoothing noise to reveal the trend.

Candlesticks

A way of plotting price that shows the open, close, high and low of each session as a candle.

Stop-Loss

A pre-set exit price for a losing trade, capping your loss before it grows.

MACD

A momentum indicator measuring the relationship between two moving averages to spot trend changes and strength.

Fundamental analysis

Price-to-Earnings (P/E) Ratio

A stock's price divided by its annual earnings per share — how much you pay for each pound of profit.

Fair Value

An estimate of a stock's intrinsic worth based on its fundamentals, regardless of its current market price.

Net Asset Value (NAV)

The per-unit value of an investment fund = (total assets − liabilities) ÷ number of units.

Market Capitalization

A company's total market value = share price × number of shares outstanding.

Earnings Per Share (EPS)

Each share's portion of net profit = net income ÷ number of shares.

Market concepts

Initial Public Offering (IPO)

A company's first public sale of shares on the exchange, turning it from private to listed.

Dividends

A share of a company's profit paid to shareholders, in cash or as bonus shares.

Liquidity

How easily a stock can be bought or sold quickly without moving its price much; reflected in trading volume and value.

Free Float

The share of a company actually available for public trading, excluding locked-in founder and large-holder stakes.

Short Selling

Selling borrowed shares hoping to buy them back cheaper later, profiting from a price fall.

Order Types (Market & Limit)

A market order executes immediately at the best available price; a limit order executes only at your set price or better.

Trading Volume

The number of shares traded over a period — a gauge of the interest in a stock.

Egyptian market

Rights Issue

A right for existing shareholders to buy new capital-increase shares at a set price; it trades on its own for a short window.

Same-Day Trading (T+0)

A feature allowing a stock to be bought and sold within the same session, available for select EGX stocks.

EGX30 Index

The EGX's flagship index, tracking the 30 largest companies by liquidity and market value.

Sharia-Compliant Stocks

Shares of companies deemed permissible under Sharia screens covering activity, debt ratios and income sources.