Traders on the Egyptian Exchange (EGX) are expecting the local market to continue its sideways-to-upward trend during this week’s trading, in attempts to breach the 10,900 points resistance level.
At the same time, the scenario of a swing trading around this level remains possible during the week’s sessions.
Mohamed Othman, head of the technical analysis department at Pharos Holding, said that “bulls” should manage to confirm breaking above the 10,900 points level, as this would pave the way to reach the 11,100 points resistance level.
Meanwhile, short term traders with cash are advised to be highly selective regarding the outperformed shares, and monitor support levels for each stock separately.
Othman added that those who are heavily invested in the market are advised to make use of any rebound, to reduce marginal exposure at relatively better levels until consistent buying power appears.
The sideways–to-upward trend dominated EGX indices during last week’s trading, which was limited to only four sessions due to the Coptic Christmas celebrations. The week’s trading witnessed the signing of the Al-Ula statement regarding GCC reconciliation.
The benchmark index EGX30 rose by 0.99% to close at 10,952 points, with the EGX70 EWI rising by 0.35% to end the week at 2,152 points.
The EGX100 EWI also rose by 0.88% to close at 3,125 points, and the EGX50 EWI rose by 1.66% to close at 2,272 points.
The market capitalisation increased by about EGP 9.3bn to EGP 660.2bn during the last week.
During last week’s sessions, 1.74bn securities were traded at a trading value of about EGP 9.1bn through 159,000 operations, compared to an amount of 2.53bn securities with a trading value of EGP 11.8bn through 202,000 transactions during the week before last.
Shares accounted for 54% of the total trading value, while the trading value of bonds represented about 46% during the week, at a value of EGP 4.09bn.
Egyptian transactions accounted for 84.6% of total trading on listed shares, while foreigners accounted for 9.1% and Arabs accounted for 6.3% after excluding deals.