The Egyptian Exchange (EGX) is expected to continue its positive performance this week, targeting a new resistance level of 11,200 points.
Mohamed Othman, head of technical analysis department at Pharos Holding, said that the benchmark index EGX30 is currently examining its major resistance at 10,875 which has been in place for the last four months.
In this regard, a clear break above 10,875 points with an improvement in the market breadth would pave the way to reach the next resistance level at 11,200 points.
“On the other hand, the first sign of weakness appears in case of breaking below the support level of 10,685 points. Accordingly, our investors are advised to adopt a conservative discipline at the current market levels and may trail their protective stop below the last week’s low at the support level 10,685 points.” Othman added.
EGX30 closed at 10,884.5 points, recording an increase of 1.5%. EGX70 EWI posted 1.67% gain concluding the last week at 2,871.09 points, while S&P index declined by 0.71% and concluded the week at 1,836.23 points.
EGX30 capped rose by 0.73% and concluded at 13,247.81 points, while EGX100 EWI rose by 1.1% and concluded last week at 3,846.51 points.
Total market capitalisation reached EGP 715.7bn last week, representing an increase of 1.31% over the period.
The total value traded recorded EGP 22.2bn, while the total volume traded reached 2,759 million securities executed through 238,000 transactions last week.
For the week before last, the total value traded recorded EGP 17.8bn, while the total volume traded reached 2,791 million securities executed over 312 thousand transactions. Stocks trading accounted for 48.15% of the total value traded of the main market, while the remaining 51.85% were captured by bonds over the last week.
Egyptians represented 90.2% of the value traded in listed stocks after excluding deals during the period.
Foreigners accounted for 3.8%, while Arabs captured 6.0%. Foreigners were net sellers, with a net of EGP 37.1m, and Arabs were net sellers, with a net of EGP 40.m, after excluding deals in listed stocks.
Since the beginning of the year Egyptians represented 82.9% of the value traded in listed stocks after excluding deals, Foreigners accounted for 10.1%, while Arabs captured 7.0%. Foreigners were net sellers by EGP 2.61bn, and Arabs were net buyers by EGP 1.15bn, after excluding deals in listed stocks during this year.