The Egyptian Exchange (EGX) witnessed a poor performance in last week’s trading, but is likely to resume its attempts to break the 11,420 – 11,500 points barrier, according to Mohamed Osman, Head of Technical Analysis at Pharos Holding.
Osman said that the focus is concerned on the latter resistance area, as monitoring of Bulls behaviour and volumes continues, to judge the strength of buying power and the EGX’s ability to resume the upward move.
A clear breach above the latter area on a weekly basis would pave the way for a strong upward move, where the next resistance level will be at 11,800 points.
“On the other hand, in case of facing further selling pressure at the aforementioned resistance area, then the first support level will stand at 11,200 points followed by 11,000 points, which is supposed to halt any further declines,” Osman said.
The benchmark index EGX30 closed in at 11,322.71 points, recording a decline of 0.04%, whilst the EGX70 EWI posted a 1.12% loss, concluding the period at 1,983.72 points. The S&P index declined by 0.04%, and concluded the period at 1,684.72 points.
The EGX30 Capped rose by 0.43% and concluded at 13,236.13 points, while the EGX100 EWI declined by 0.54%, concluding the period at 2,916.58 points.
The total market capitalisation reached EGP 630.7bn at the end of period, representing a decrease of 0.07% over the last week.
The total value traded last week was recorded at EGP 12.0bn, while the total volume traded reached 2,070 million securities executed over 223,000 transactions.
For the week before last, the total value traded recorded EGP 10.3bn, while the total volume traded reached 1,552 million securities executed over 182,000 transactions.
Stocks trading accounted for 65.06% of the total value traded on the main market, while the remaining 34.94% were captured by bonds over the last week.
Egyptian activity represented 83.0% of the value traded in listed stocks, after excluding deals during the period. Foreigners accounted for 9.2%, while Arabs captured 7.8%. Foreigners were net buyers, with a net of EGP 34.2m, and Arabs were net buyers with a net of EGP 172.2m, after excluding deals in listed stocks.
Since the beginning of the year, Egyptians have represented 75.0% of the value traded in listed stocks after excluding deals, with foreigners accounting for 18.4%, while Arabs captured 6.6%. Foreigners were net sellers by EGP 12,729.3m, and Arabs were net sellers by EGP 1,156.2m, after excluding deals in listed stocks since the start of the year.