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EGX breaks 10,300 barrier amid selective buying opportunities - Daily News Egypt

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EGX breaks 10,300 barrier amid selective buying opportunities

Expectations to test 11,000 points over weekend

The Egyptian Exchange (EGX) Tuesday trading session saw positive indicators, giving the green light for a market rise. The EGX exceed the barrier of 10,300 points amid expectations for a further rise to 11,000 points over the weekend.

The blue-chip EGX30 index rose 1.01% to reach 10,485.4 points, with the EGX70 EWI rising 1.85% to settle at 1,067.15 points.

Mohamed Abdel-Hakim, Director of Research at Faisal Brokerage Company, projected that the market will continue its rise over the week’s remaining two sessions to reach 11,000 points over the weekend.

Abdel-Hakim added that, despite the selling pressure in large volumes from foreigners during Tuesday’s session, there were noticeable purchases by individuals. He highlighted the real estate sector as the best performer during the week’s sessions, alongside Ezz Steel, Dice, and CI Capital shares. He also advised investors to focus on each share’s targets to make profits.

The market recorded a trading value of EGP 1.45bn on Tuesday through 32,000 transactions on 14.299m shares. These included the shares for 180 listed companies, with the prices of 123 shares rising, 30 falling, and 27 shares unchanged. Market capitalisation closed at EGP 562.360bn.

Mostafa Kordy, of the Arab African International Securities, said there are strong indications the market has recovered, and would be breaking the 10,300 points level with high liquidity rates.

He projected that the market will be able to rise by an additional 1,000 points in the coming period, but it is possible that the next two sessions will witness profit-making from some investors.

Kordy advised investors to keep shares and consider good stocks that represent a strong buying opportunity in the long run, given their low price levels.

He stressed that companies enjoying large liquidity and cash dividends were not significantly affected due to the wave of declines since the beginning of the crisis. The companies, which include Oriental Weavers, Faisal Islamic Bank, Abu Dhabi Islamic Bank, and Al Baraka Bank, have also been the fastest rebounding.

Net dealings of Egyptians alone went towards buying with a value of EGP 722m and a 67.19% market share, while Arab and foreign investors were net sellers registering EGP 4.7m and EGP 717m, accounting for 3.14% and 29.67% of trading, respectively.

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