Egypt shares recorded its best weekly gains in September last week buoyed by local and Arab investors who embarked on building new positions ahead of the next earning season.

The benchmark EGX30 index rose 1.41% or 193.18 points, the highest weekly rise in September, to 13,888.51 points by the end of the week.

Traded volume on the EGX30 index reached 2.3 billion shares, with a turnover of EGP 4.3bn.

On the other hand, EGX70 rose 1.42% to 773.53 points, while EGX100 hiked 1.89% to 1,723.81 points.

The equally weighted EGX50 index added 4.11% to 2,313.32 points, with a turnover of around EGP 5bn.

EGX30 continued rising this week, backed by the surge in the purchase power, the head researcher at the Roots Stock Brokers, Sameh Gharib, said in a research note.

The index might cross the 14,000-point level next week, Gharib added, noting that the EGX30 is heading to the 14,250-point level.

The CIB’s stock dropped 0.83% to EGP 81.55, generating a turnover of EGP 424.2m, with 5.2 million shares traded.

Market capitalisation lost EGP 16.2bn to EGP 732.43bn during the week, from EGP 748.5bn.

Egyptian and Arab investors were net buyers with EGP 65.8m and EGP 87.1m respectively, while foreigners were net sellers with EGP 152.9m.

On the short term, the Egyptian Exchange (EGX) is likely to see sideways performance during the beginning of October.

A market analyst at Mubasher International for Securities, Shahd Raafat, said the benchmark EGX30 index ended last month session in green to close at 13,740 points on above-average volume.

“The EGX30 index could not break above its recent resistance of 13,780 points, and in case this level stopped the index from further advancing, then we recommend off loads,” Raafat highlighted, pointing out that “the level of 13,600 points is a trailing stop-loss level in the short term.”

Meanwhile, Ayman Fouda, the head of the capital market committee at the African Economic Council, said in another research note that the EGX is expected to carry on the sideways-to-declining performance at the beginning of the current month.

The EGX30 index has short-term resistance at 13,780 and 13,972 points, while it has support at 13,670 and 13,609 points, Fouda added.

The EGX70 index is forecasted to retest resistance at 770 and 780 points in case of the entry of new liquidity on active stocks, while it may see support at 755 and 749 points, he continued.

The analyst recommended quick trading to protect profits on stocks, which hover around its main resistance levels, noting that a quick trader should be patient while trading on stocks, in line with buying on margin.

The banking sector’s stocks could serve as another boost for the market on the short term, an analyst told Daily News Egypt.

Hany Amer, senior equity analyst at MubasherTrade, expected significant performance for the banking sector in the coming period.

The banking sector is expected to lead the EGX over the coming period, along with the fertiliser and tourism sectors, Amer highlighted.

Approving the final form of the Central Bank of Egypt’s (CBE) law will support the performance of the sector over the next period, which will force about six banks to increase its capital, the analyst added.

The Export Development Bank of Egypt’s (EBE) stock surged last month to EGP 13.75, an increase of 10% to reach its highest levels since July 2008, with a turnover of EGP 13.2m.

Likewise, the UNB rose to its highest levels in six years or since 24 January 2011, rising 9.89% to EGP 8.89, with a turnover of EGP 152m.

By the end of last month’s trading session, the Suez Canal Bank topped the banking sector’s rising stocks by 7.08%, followed by Union National Bank-Egypt (UNB) and EBE, which gained 6.43% and 6.16% respectively.

The heavyweight Commercial International Bank-Egypt (CIB) rallied 8% last month to EGP 81.25.

The banking sector index rose during September by 6% to 6,422.94 points.