The Egyptian Exchange (EGX) celebrated trading of e-finance shares during the last week’s session, during which the stock rose by more than 50% despite the pressures of foreign sales and profit-taking operations.
The huge trading in the share of the fintech company brought the communications and information technology sector back to the top of the active sectors on the EGX during the past week.
Hesham Hassan, Head of Investment Department at HD securities, said that the trading in the last session was a “joy” for the market, as the shares of e-finance started trading. However, he believes that the ‘joyful’ atmosphere will end and the real test for the EGX will begin from today’s session.
Hassan pointed out that if real liquidity and an actual improvement are resulting from the offering of e-Finance, the EGX30 index will start to support the positive movement of the stock, targeting the levels of 11,300 points, then the strongest resistance at 11,600 points, to reach the levels of 12,000.
The Egyptian Exchange indices witnessed a mixed performance during the last week’s trading, amid purchases by Egyptian investors.
A report issued by the EGX Information Center stated that the main EGX30 index rose by 1.24% to reach 11,132 points, while the small and mid-cap index EGX 70 fell 8.46% to 2413 points, and the broader EGX100ewi index dropped by 6.65% to 3,390 points.
Mohamed Othman, head of the technical analysis department at Pharos Holding, sees that the EGX30 Index started to face selling pressure after reaching its previous peak at 11,320 points.
“We have reiterated that the blue-chips performance is improving than the small and mid-caps. We also advised our investors to adopt more conservative discipline by trailing the protection levels for each stock as the index was hovering around a key resistance,” Othman added.
He continued that the first minor support level to watch is at 11,100 points while breaking below the latter level the correction would extend to the next support at 10,950 points. Hence, in case of a relatively clear break above 11,320 points with high volumes and an improvement of the market breadth, would trigger a bullish signal and pave the way for a further upward move to reach 11,675 points.