Egypt shares closed almost flat last week, as foreign investors were booking gains from a sustaining market rally amid a sell-off streak in the Middle East markets coinciding with the Saudi Arabian start of its anti-corruption probe.
The benchmark EGX30 index ticked up 0.22%, or 30.8 points, closing Thursday at 14,350.14 points.
Trade volume came in 1.5 billion shares, with a liquidity of EGP 4.55bn.
On a weekly basis, the EGX’s market capitalisation gained EGP 7.7bn to reach EGP 788.5bn, compared to EGP 780.7bn in the week before.
The small- and medium-sized enterprises EGX70 index inched down 0.52%, reaching 785.6 points, while the EGX100 index shed 0.17% to reach 1,773.55 points.
The equal-weighted EGX50 index decreased 0.68%, reaching 2,515 points, with a liquidity of EGP 5.2bn.
The Commercial International Bank’s (CIB) stock, the heaviest weight in the main gauge, edged lower 0.31% to reach EGP 77.9, with a trading volume of 4.7 million shares, with a turnover of EGP 367.7m.
CIB reported record third quarter (Q3) results last week, with net income up 23% year-on-year in Q3 2017 to EGP 2.1bn, the bank said in its earnings release.
Revenues advanced 45% compared to the same period last year to close the quarter at EGP 4.2 bn. On a nine-month basis, that gives CIB net income of EGP 5.7bn (up 27% in 9 months 2016) on revenues of EGP 11.0bn (up 35%).
Strong fundamentals and balance sheet growth allowed CIB to deliver “strong financial results in the third quarter of 2017” despite “challenging macroeconomic and regulatory conditions,” management said in a comment accompanying the results.
Foreign investors were net sellers last week with EGP 313.6m, while Egyptian and Arab investors were net buyers with EGP 166.38m and EGP 147.28m, respectively.
Meanwhile, (EGX) is expected by analysts to see a short-term negative rebound at 14,250 and 14,270 points.
Technical analyst at Jazira Securities Brokerage Ahmed Thabet said that the EGX would see a negative performance on the short term.
The benchmark EGX30 index may face rebounds that push it to the levels of 14,250 and 14,270 points, and then to 13,800 points, Thabet highlighted.
The EGX would maintain a long-term bullish performance over the coming period as long as the EGX30 index is settled above 13,200 points, he added.
The analyst mentioned that the EGX was not highly affected by the Saudi Royal anti-corruption decisions.
The Saudi situation has frightened Egyptian investors that the EGX may see sideways moves, analysts said, assuring that the market would not be impacted.
The EGX30 index is likely to retest levels ranging between 14,320 and 14,385 points if it settled above 14,100 points, head of the capital market committee at the African Economic Council Ayman Fouda said in a research note.
The index may retest support at 14,100 and 14,000 points, Fouda added.
The EGX70 index has resistance at 795 and 803 points, while it has support at 773 and 765 points, he indicated.
He recommended good observation of stocks and partial profit-taking on stocks, which reached close resistance levels, in line with keeping a sufficient liquidity in investment portfolios.
“The EGX indices ended the current week trading activities at the levels of the previous week, after the EGX recovered to reach near 14,000 points after Saudi Arabia started its anti-corruption crackdown,” Saeed El-Feki, a branch manager of Osool ESB Securities Brokerage.
The resistance level of the EGX30 index is at 14,500, while exceeding this level requires strong momentum, El-Feki added.
El-Feki forecasted sideways performance between 14,300 and 14,500 points in the coming period, until the main EGX30 index exceeds these levels to attract more investors.
Regarding the small- and medium-sized enterprises EGX70 index, it exceeded 785 points by the end of the week on 9 November, El-Feki indicated, concluding that it aims to exceed 800 points in the coming period.
Blue chips will reinforce gains over the coming period, as EFG Hermes has support at EGP 24 and targets EGP 26, while TMG Holding has resistance at EGP 9.7 and targets EGP 11, El-Feki noted.
Blue chips, including Citadel Capital, Telecom Egypt, and Ezz Steel, leveled up 7.3%, 3.73%, and 2.3%, respectively.
On the other hand, Domty topped declining leading stocks with a 4.44% drop, followed by Hadisolb and Sodic, which fell 2.93% and 2.83%, respectively.