Daily News Egypt

Foreign purchases support EGX rally towards 11,800 points - Daily News Egypt

Advertising Area

Advertising Area



Foreign purchases support EGX rally towards 11,800 points

Investors should focus on banking, non-banking financial sectors and chemical sectors: Abdel Hakim


The Egyptian Exchange (EGX) closed high at the end of Tuesday’s session, in clear step towards its target of breaching the 11,800 barrier.

The surge was supported by foreign investor purchases and the rise of many leading stocks, led by the Commercial International Bank – Egypt (CIB).

The blue-chip EGX30 rose by 0.24% at the close of Tuesday session, recording 11,461 points, while the EGX70 EWI rose 0.08% to settle at 1,755 points. The EGX50 EWI declined by 0.26%, stabilising at the level of 2,014 points, whilst the EGX30 capped index declined by 0.10%, settling at the level of 13,393 points. The broader EGX100 fell by 0.04%, stabilising at the level of 2,656 points.

Mohamed Abdel Hakim, Director of the Faisal Research Unit for Securities Trading, expects that the EGX30 will breach 12,000 points as a first target, after confirming its breach of the 11,200 barrier, indicating the emergence of purchasing forces in the market.

He pointed out that the CIB share is in a position of significant market strength, and is expected to reach EGP 78 per share during the coming period.

Abdel Hakim advised investors to focus on strong sectors that give good returns, such as the banking and non-banking financial sectors, in addition to the chemicals sector.

The market recorded a trading value of EGP 1.7bn through the execution of 46,0700 transactions on 533.7 million securities, with trading occurring on 177 listed companies. Of these, 65 shares rose, 94 shares declined, while 18 remained unchanged.

Sameh Gharib, Head of Major Clients at Arabiya Online Securities Brokerage, said Tuesday’s session witnessed a discrepancy, in conjunction with the emergence of purchasing powers in the CIB share.

He explained that the CIB share was able to breach the resistance level at EGP 66.5 and the annual resistance level of EGP 68, to close at EGP 69. He indicated that the important resistance level for the stock has been marked at EGP 70.

Gharib pointed out that the EGX30 is looking to breach the 11,600 points level, then 11,800 points, with the indicator moving in an upward direction for the short term.

He advised investors to focus on portfolio-held stocks, explaining that many of the leading stocks are witnessing profit-taking, with others moving in an upward direction.

The net transactions for Egyptians tended towards sales, reflecting a total of EGP 85.2m in sales, and accounting for 76.13% of transactions. The net transactions of Arabs and foreigners tended towards buying, recording EGP 4.2m and EGP 81m, respectively, with an acquisition ratio of 5.16% and 18.7 % of trades, respectively.

Individuals carried out 69.5% of transactions, heading towards selling, with the exception of Arab individuals who recorded a net purchase of EGP 4.2m. Institutions seized 30.4% of trades heading towards selling, with the exception of foreign institutions that recorded net purchases of EGP 81.6m. Local and Arab institutions recorded net sale worth EGP 73m and EGP 5.7m respectively.

Advertising Area

https://dailyfeed.dailynewsegypt.com/2020/08/25/foreign-purchases-support-egx-rally-towards-11800-points/
Breaking News

No current breaking news

Receive our daily newsletter
Subscribe