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Optimism with EGX performance in Ramadan, EGX30 targets 13,500 points - Daily News Egypt

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Optimism with EGX performance in Ramadan, EGX30 targets 13,500 points

Leading stocks support market, analysts recommend profit making near resistance levels

The Egyptian Exchange (EGX) begins trading in the month of Ramadan in a good technical position. The main index closed at above 13,000 points, supported by the purchases of foreign and Arab institutions to lead the stock market to overcome the rise in interest rates last week.

During the trading last Thursday, the shares of Commercial International Bank (CIB) increased 3.01%, to close at EGP 79.5. EFG-Hermes continued in green, going up by 2.6% and closing at EGP 25.6

Orascom Telecom, Media, and Technology (OTMT) also rose 5.41% to close at EGP 0.78 amid expectations of dividends of EGP 0.1 per share, which the general assembly is preparing to approve on 28 May. Meanwhile, Talaat Moustafa Holding dropped by 1.42%, to close at EGP 7.61.

The turnover on Thursday recorded about EGP 1bn. Foreign and Arab investors concluded their trading with net purchases of EGP 82.4m and EGP 29.9m respectively. Egyptian investors’ net sales reached EGP 112.3m.

The head of the brokerage sector in Ostoul Capital Group said that purchases of foreign and Arab institutions in the EGX contained the crises experienced by the market during the last week, especially raising interest rates.

He expected positive movements of the stock market during the first half of the month of Ramadan, which starts Sunday’s transactions towards 13,300-13,500 points, adding that the market will slow down in the second half of Ramadan, which coincides with the end of the first half of this year, in addition to the holiday season.

He advised traders who have existing financial positions in the EGX to go for profit making as the index reaches resistance levels, while liquidity holders should continue building financial positions with the start of the profit-making period.

He pointed out that the market faced negative indicators during the last period and thus reduced the market benefit from the positive results announced by companies for the first quarter of this year.

Mohamed El-Aasar, head of the technical analysis department at Watany Capital Securities, predicted positive moves towards 13,600 points during Ramadan, saying that the market will move to 13,300 points this week, based on 12,880 points.

He added that the leading stocks on the EGX are likely to move positively in the coming period, especially EFG-Hermes, nominated to reach EGP 27 and CIB to EGP 82.5, next to OTMT towards EGP 0.83.

He highlighted the expected negative effects on the turnover during Ramadan, with the implementation of the stamp tax on the EGX.

The EGX concluded Thursday’s session boosted by the support of foreign and Arab investors.

Topics: EGX ramadan

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