The government’s IPO program helped Egypt’s stock market finish trading in the green last week on optimism among stock traders.
The leading EGX30 index closed last week’s trading session at 17,342 points, up 1.4%, while the EGX70 EMI fell 1.33% to 3,428 points.
The EGX30-Capped rose about 1.08% to 21,074 points, and the broader EGX100 Index fell 1.2% to settle at 5,084 points.
Moataz Ashmawy, managing director of Arabeya Online, said that EGX30 broke the resistance level of 16,800 points earlier in the week and increasing purchasing power pushed the index to 17,300 points.
He explained that the rest of the leading stocks were following CIB stock and heading higher, contributing to the rise in the main index, with trading prices falling compared to previous months.
He explained that the decline in trading prices was due to Al-Warsa’s liquidity-draining operations, which reached EGP 3 billion, in preparation for Beltone’s underwriting process.
Ashmawy expected the main EGX30 index to rise to a level of 17,800 points during this week’s trading and for stock market indicators to turn positive on positive and stimulating news for the current economy.
The market last week saw EGP 15 billion traded and 3.8 billion shares outstanding in 115,600 stores, compared to EGP 6 billion traded and 2.5 billion shares outstanding in 209,000 stores two weeks ago.
The Egyptian stock market rebounded from a sharp fall last week as positive news about government exit deals boosted investor sentiment, said Mohamed Hassan, investment fund director at Odin Investments.
Hassan expects the EGX30 to continue its positive trend in the coming weeks, reaching levels of 17,600 points and 17,800 points, supported by the stability of the economic situation.
He said the EGX70EWI index, which tracks small and mid-cap stocks, closed at a support level of 3,400 points and started to recover. He assumes that it will continue to rise in the coming weeks and that liquidity will flow again after positive economic news.
Hassan advised investors to trade quickly between support and resistance levels in the current phase and avoid buying on margin until markets have a clear view. He said he expects indicators to trade sideways in the medium and short term.
Foreigners recorded net sales of EGP 251 million, accounting for a 6.6% share of stock sales and purchases, while Arabs recorded net sales of EGP 21.2 million, accounting for a 7.1% share (excluding deals ) recorded.
Equities accounted for 82.55% of the Egyptian Stock Exchange’s transactions over the past week, while bond trading accounted for about 17.45% of transactions.
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