Egyptian shares kept their rally alive last week, although investors were booking gains from a sustained market rally, data compiled by the Egyptian Exchange, and obtained by Daily News Egypt, showed.
“We could see a profit-taking streak again this week. This is normal, but the mid-term trend is suggesting that the market would keep the rally alive with fresh stimulus and a number of IPOs which could serve as a main boost to the market in the long term,” said analyst Sameh Gharib of the Roots Stock Brokerage House.
EGX30 is now targeting the resistance level of 17,100 points, followed by 17,500 points, while the support levels are now at 16,750 and 16,400 points, Gharib noted.
Meanwhile, analyst Ayman Fouda said that the benchmark EGX30 index has resistance at 16,400 and 16,500 points and has support at 16,200 and 16,000 points.
The EGX70 index has a short-term resistance at 909 and 918 points, while it has support at 885 and 878 points, he added.
Fouda recommended that investors hold on to their stocks, in line with performing quick trades between support and resistance levels to protect earnings and keep a percentage of liquidity in investment portfolios to add new purchasing positions near support levels.
EGX 30 keeps rally alive
The Egyptian Exchange (EGX) ended last week on an up note with the main index reaching a new all-time high, exceeding the 17,000-point level.
EGX30 rose for the sixth week in a row, as it added 0.39%, or 65.48 points, and closed at the level of 17,064 points.
Traded volumes reached 1.88bn shares with a total value of EGP 6.6bn.
Market capital lost EGP 8.8bn to reach EGP 963.6bn.
EGX70 fell by 2.4% to 878.26 points, while the broader index EGX100 declined 0.89% to 2,251 points.
Meanwhile, the equal-weighted EGX50 rose 1.74% to 2,889 points.
Sixth of October Development and Investment (SODIC) was among the top gainers last week, with its stock rising to its highest level in almost 10 years, since May 2008.
SODIC rose by 23.56% since the beginning of 2018 with a turnover of EGP 2bn.
SODIC’s stock is likely to maintain the upward trend in the long-, medium-, short-terms to target EGP 34 in the long term, Aljazira Capital said in a research note.
The stock has resistance at EGP 23.50 and EGP 24, and has support at EGP 19 and EGP 20, the investment bank highlighted, adding that SODIC is targeting significant levels ranging between EGP 28 and EGP 34 in the long- and medium-terms.
On another note, Eastern Company rose 6.7% last week, after the company announced it has signed a five-year joint production agreement with Al Mansour International Distribution Company.
The Egyptian tobacco firm will partner with Al Mansour International, licensed by the German owner of the cigarette brand Reemtsma Cigarettenfabriken, to produce and distribute its cigarettes in the local market.
The agreement will last for five years, starting on 21 March 2018, through 20 March 2025, according to the filing.
Al Mansour will manage the marketing, distribution, and sale of the joint product in Egypt, the company noted.
Eastern Co is projected to sell 281m cigarettes at an average price of EGP 18 per pack in 2018, the company pointed out.
Meanwhile, the mandatory tender offer presented by Cairo 3A Group to buy 95,700 of National Company for Maize Products (NCMP)’s shares for EGP 4.88m was accepted, the EGX said last week.
The sold shares were priced at EGP 51 per share, the statement revealed. NCMP’s capital hit EGP 295.12m, divided into 29.5m shares.
Meanwhile, Egypt Aluminium has adjusted its estimated budget for fiscal year 2018/2019 due to the fluctuating global prices on the London Metal Exchange.
Egypt’s largest aluminium producer targets EGP 1.78bn in profits for the coming fiscal year, versus estimated profits of EGP 1.65bn for fiscal year 2017/20 18.
The EGX-listed company had previously said it targets EGP 1.209bn in profits for FY 2018/2019, in addition to investing EGP 392.482m in the same period.