By Fatheya Al-Garhy
The stock market remained surprisingly resilient to last week’s consecutive multitude of violent events: Nile City towers, Dahshour and Rafah. They caused a sharp decline in the market’s indices only for them to rebound back and absorb the events, supported by Egyptians’ purchasing transactions.
Another major factor that contributed to the market’s durability are the purchases of non-Egyptian Arabs, which coincided with President Morsy’s action to purge key security and military personnel. The indices fell once again after power went out in the Egyptian Stock Exchange, which forced the postponement of trading for 90 minutes, leading the EGX30 to dive below the 5,000 points, falling 0.57 percent over the whole week and closing 4961 points.
The market’s index for small and medium sized enterprises, EGX70, fell1.82 percent by the end of the week to close at 444 points after breaking the support level at 450 points, targeting the 440 points level. The EGX100 retreated by 1.5 percent to close at 764 points.
Orascom Telecom and Media Technology led the trading for three consecutive weeks, with the telecommunications sector occupying the largest volume of trade as opposed to other sectors, accounting for more than 25 percent of transactions, closing at EGP 0.54. Orascom Telecom was another factor for the market’s resilience during last week, accounting for more than 11 percent of total transactions and breaking the EGP 3.4 resistance level, closing at EGP 3.5, rising 6 percent.
The Commercial International Bank (CIB) saw wide transactions from foreigners, with the banking sector accounting for 18 percent of the market’s transactions.
CIB’s stock recorded stock trading worth of EGP 1.72 billion, trading 691.1 million stock in 93,000 executed transactions, with gross market capital of EGP 346.6 billion.
Sigma Capital’s chief technical analyst, Mohamed Al-Asar, stated that the market will continue on a horizontal move during this week and is expected to drop slightly during today’s session as well as tomorrow’s until it reaches the level of 4,800 points. It will then target the level of 5,050 points by the end of the week, with transactions valued at approximately EGP 300 million daily.