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EGX faces corrective dip before resuming rise - Daily News Egypt

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EGX faces corrective dip before resuming rise

The EGX now faces a potential corrective dip before resuming its rise towards breaking a new resistance level, since it is difficult to breach successive resistance levels without correcting down.


The main Egyptian Exchange (EGX) index’s breaking of the 11,200 points barrier has prompted the entry of the market’s purchasing power once the rise above this figure was confirmed with high trading volumes.

The EGX now faces a potential corrective dip before resuming its rise towards breaking a new resistance level, since it is difficult to breach successive resistance levels without correcting down.

The main Egyptian Exchange EGX30 index declined 0.07% at the end of Wednesday’s trading, settling at 11,453 points, while the EGX70 EWI index rose 1.65% to 1,784 points.

Osama Gamal, Managing Director of Naeem Securities Brokerage Company, suggested that the rise would be completed quickly, with the current index correction set to end in a short period. This would see the improvement of market and local economy conditions with the diversification of investment tools, by establishing a commodity exchange and futures.

Gamal explained that the declines represent opportunities to consolidate purchasing centres, especially in promising sectors such as non-bank financial services shares. Companies in this sector are witnessing a great boom during the current period for various reasons, most notably due to the novel coronavirus (COVID-19) crisis and the demand for electronic payment alternatives.

The EGX50 index recorded a rise of 0.64% on Wednesday, settling at the 2,027 points level, whilst the EGX30 capped index declined by 0.1%, stabilising at the 13,381 points level. The broader EWI EGX100 index rose by 1.3%, stabilising at the level of 2,691 points.

Wednesday’s market trading value reached EGP 1.6bn through the circulation of 544.1 million shares, and 48,300 transactions on the shares of 178 listed companies. Of these, 95 shares rose, and the prices of 57 securities declined, while the prices of 26 remained unchanged. The market capitalisation of the listed shares settled at EGP 628.78bn.

Egyptians were net buyers with a value of EGP 38.8m, accounting for 74.7% of the buying and selling of shares. The net transactions of the Arabs and foreigners tended towards selling, recording EGP 7.4m and EGP 31.5m, respectively, with 6.3% and 18.9% acquisition rates, respectively.

Individuals carried out 70.5% of transactions, heading towards buying, with the exception of Arab individuals who recorded net sales of EGP 39.04m. Institutions seized 29.5% of trades heading towards selling, with the exception of Arab institutions that recorded a net purchase of EGP 31.6m, while Egyptian and foreign institutions recorded net sale of EGP 8.4m and EGP 35.2m, respectively.

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https://dailyfeed.dailynewsegypt.com/2020/08/27/egx-faces-corrective-dip-before-resuming-rise/
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