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Egypt shares extend sideways, await new stimulus - Daily News Egypt

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Egypt shares extend sideways, await new stimulus

EGX30 lost 0.5% in a week to close around 13,400 points

Egypt stock market extended its sideways in the past week, with lack of new stimulus in the market, according to analysts polled by Daily News Egypt.

EGX 30, the main benchmark, lost 0.5% to close at 13,405 points, its lowest level in almost a month according to bourse data.

The EGX70 lost 0.91% to 710.59 points, while the EGX100 added 0.69% to 1,603.95 points, and the EGX50 edged lower 0.21% to 2,077 points.

Market capitalization lost EGP 3.05 billion and closed at EGP 708.8 billion.

Foreign and Arab investors were net buyers by EGP 72.6 million and EGP 5.3 million, respectively, while Egyptian investors were net sellers by EGP 78.02 million.

Stock market analysts expected the Egyptian Exchange (EGX) to extend its sideways performance this week as the benchmark EGX30 index is targeting the mark of 13,500 points.

Market analyst at Mubasher International for Securities Shahd Raafat said that the market’s main index is expected to move sideways between 13,300 and 13,600 points this week.

Meanwhile, technical analyst Ayman Fouda expected the main gauge to have resistances at 13,493, 13,518, and 13,544 points, while the support levels are likely to be 13,330, 13,240, and 13,150 points.

The small- and medium-sized enterprise index EGX70 is likely to face resistance at 668 points, and has supports at 660 and 654 points, Fouda added.

A recent report issued by Frontera Research has expected foreign investors are expected to inject free cash in Egypt stock market in the long run, when the Central Bank of Egypt embarks on a slew of monetary policy easing in the few coming months.

“Investor interest in Egyptian equities is visible in the long run. If inflation declines in the next 2 to 3 months and the central bank finds itself able to reduce rates thereafter, interest rate sensitive sectors like financials, real estate, and consumer discretionary could see a rise. The first two form 48% of the EGPT’s portfolio,” the report seen by Daily News Egypt said.

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