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Egypt shares to extend rally amid fresh liquidity, target 16,000 points in mid-term - Daily News Egypt

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Egypt shares to extend rally amid fresh liquidity, target 16,000 points in mid-term

Benchmark index EGX30 rose for second week in a row as foreigners buy

Egypt shares are expected to move upwards in the few coming weeks amid fresh liquidity, targeting an important resistance level at 16,000 points, analysts polled by Daily News Egypt expected.

Purchasing powers helped the main index maintain its gains, after bouncing over the 15,000 point-level, according to market analyst Samih Gharib.

The Egyptian Exchange (EGX) 30 will continue to target resistance level at 16,000 points, he added.

The EGX rose last week as the market capital increased by around EGP 5.4bn.

The small and medium sized enterprise (SMEs) index EGX70 increased by 0.8% to 754.06 points, while the broader index EGX100 gained 0.58% to end the week at 1,953.73 points.

Technical analysts predicted an upward trends to dominate the market this week and the main EGX30 benchmark index to advance to 16,000 points.

“The EGX30 is set to reach and cross the resistance level of 16,000 points, betting on the purchasing powers edging up,” said the manager of investments at Royal Securities Hisham Hassan.

Hassan predicted that the stock of the Commercial International Bank to test the resistance level at EGP 86, then at EGP 96. The stock closed at EGP 85.56 recording 1% increase.

Regarding EFG-Hermes, he predicted the stock to cross EGP18.40 level, and to target the resistance level of EGP19.20 before heading towards EGP 21.60.

Along the same vein, Samah Gharib, head of technical analysis division at Roots Securities predicted SME companies’ index to reach 770 points on the back of it crossing 750 points.

Last week, the (EGX listing committee approved the change of Orascom Telecom, Media, and Technology Holding’s (OTMT) name to become Orascom Investment Holding on the Egyptian securities listing.

The company’s name has been changed on the EGX’s database as of Thursday, 9 August, the Egyptian bourse said in a statement on Wednesday.

In June, OTMT said that its extraordinary general assembly (EGM) approved the amendment of the company’s name to be Orascom Investment Holding.

Meanwhile, Minapharm Pharmaceuticals has announced the closure of an EGP 95.52m deal to buy a 15.76% stake in its subsidiary, Minapharm Probiogen from Triquetra BV.

The Egypt-listed company has acquired 4,871 of Minapharm Probiogen’s shares, according to a bourse statement.

Following the deal, Minapharm Pharmaceuticals’ stake in the subsidiary will be increased to 75.01% from 59.25%.

On the other hand, the financial indicators of Sidi Kerir Petrochemicals (Sidpec) have shown a 12.2% year-over-year increase in net profit for the first half (H1) of 2018.

The company logged EGP 681m in net profit during the six-month period ending in June, versus EGP 607m a year ago, according to a filing to the EGX.

Moreover, sales rose slightly to EGP 2.7bn at the end of June from EGP 2.6bn in H1 of 2017.

The financial indicators of Sidpec previously showed a 33.33% y-o-y surge in net profit for the first quarter (Q1) of 2018, recording EGP 284m from EGP 214m.

Sales increased to EGP 1.2bn in the three-month period ending in March, versus EGP 1.13bn in Q1 2017.

Sidpec’s profits fell 21% to EGP 1.13bn in the full-year ending in December, from EGP 1.42bn in 2016.

In other market news, Holding Co for Maritime and Land Transport and the Alexandria Port Authority have decided to float 30% stake in Alexandria Container and Cargo Handling Co on the EGX through a secondary offering.

NI Capital will act as the offering adviser to provide any services related to the transaction, Alexandria Container said in a filing to the EGX.

The company indicated that this comes within the framework of the government’s initial public offerings (IPOs) programme.

Alexandria Container last reported an 11.8% growth in net profits during the fiscal year (FY) 2017/2018, recording EGP 2.45bn, compared with EGP 2.19bn in FY 2016/17.

Egypt plans to free float 23 state-run firms on the EGX at a total market value of EGP 80bn, as part of the first phase of the government IPOs programme.

Meanwhile, Acumen Asset Management is looking to create two new investment funds worth a combined value of EGP 200m.

The company has addressed an insurance company entity regarding the setting up of an EGP 100m cash fund, head of business strategy and product development May El Haggar told Al Borsa.

The second fund will be a guaranteed capital fund with the same target value, she continued.

The Egyptian firm is currently negotiating with an investment company over establishing the guaranteed capital fund, with talks likely to end in a short period, the head of business strategy added.

Acumen is also seeking to boost the volume of managed assets, currently worth EGP 1.6bn, through raising the value of financial portfolios, in addition to raising new investment funds, El Haggar concluded.

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