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Recent offerings revive hopes of EGX dealers of recovery - Daily News Egypt

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Recent offerings revive hopes of EGX dealers of recovery

EGX30 likely to move sideways between 10,400 and 11,000 points in coming sessions: Agina


Dealers in the Egyptian Exchange (EGX) believe that the offerings made during the previous period, which have been awaited for a long time, would be a lifeline for the stock market.

The benchmark index EGX30 rose by 2.5% at the end of the third quarter of the year, reaching 10,517 points, while EGX70 EWI rose by 17.2% to settle at 2,722 points.

Mohab Agina, head of the technical analysis department at Beltone Financial, said that EGX30 breached an important support level at 10,800 points during the end of the last quarter, advising investors to close marginal buying positions.

He explained that the performance of the stocks leads the market towards an upward corrective movement, which leads it to retest the resistance level of 11,500 points at its end, noting that EGX30 index will move sideways between the levels of 10,400-11,000 points.

EGX30 capped rose by 0.6%, collecting 12,885 points, and EGX100 EWI also increased by 11.9%, settling at 3,671 points.

Mohamed Ismail, head of technical analysis department at The Roots, said that EGX30 capped witnessed a sharp decline from its previous peak at the resistance level of 13,730 points, and it reached the support level of 12,650 points, losing nearly 65% ​​of the last ascending wave. This led to the emergence of some purchasing power, and it started to rise in a corrective movement upwards to retest the 13,075 resistance area, and in the event that it breaches it upwards, it will be a signal that the decline has ended, and that the index will revive to retest its previous peak again.

He explained that the SMEs index is trading in a transverse range below the resistance level of 2,800 points, which must be breached upwards in order for the vision to change to positive again, and if this happens, it will retest the resistance area at least 2,960, while the first support lies at 2,687 points, and if it breaks down, it will retest the previous low of 2,560 at least.

The market recorded trading values ​​of EGP 277.2bn at the end of last week, through the circulation of 31.8 billion shares, implementing 3.2 million buying and selling operations, compared to the transactions of the previous quarter, which amounted to EGP 221.7bn and the amount of 32.4 billion shares traded, through 2.6 million transactions, to stabilize the market capital for listed shares at EGP 703.3bn.

Foreign transactions recorded a net sale of EGP 291.4m with a 7.3% acquisition of shares. Arabs tended to buy net transactions amounting to EGP 1.2bn and an acquisition rate of 5.9%, after excluding deals.

Shares accounted for 40.9% of the trading of the Egyptian Stock Exchange during the past week, while the value of bond trading represented about 59.1% of the trading.

Topics: EGX

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