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EGX expected to test 11,200 point resistance level this week - Daily News Egypt

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EGX expected to test 11,200 point resistance level this week

Last week, market capitalisation reached EGP 616.8bn, down by 1.7%

Traders on the Egyptian Exchange (EGX) are expecting that this week’s market transactions will witness a relative improvement in performance, driven by the upsurge of global markets.

On the back of this global improvement, it is hoped that the EGX will test the main 11,200 point resistance level. This is set to take place in parallel with the anticipated positive news and incentives represented in determining gas prices for factories, or the announcement of inflation rates.

Most of the US stock indices rose during Friday trading, with the Dow Jones Industrial Average closing up 0.48% at 27,665 points.

In Egypt, the blue-chip EGX30 index declined by 0.98% during last week’s sessions, to close at 11,070 points, whilst the broader EGX100 EWI rose 0.43% to 2,736 points.

Mohamed El-Aasar, Head of the Technical Analysis Department at Aman Securities Brokerage, suggested that the EGX30 would target breaking the 11,300 point barrier during this week. He added that this month has seen the end of the market’s decline, reaching its lowest level during last week’s sessions.

He confirmed that the small and medium-sized enterprises index EGX70 EWI will test the 1,970 point level this week, provided that the market resumes its rise starting from Sunday.

El-Aasar noted that the most prominent stocks on the EGX are those belonging to the Sidi Kerir Petrochemicals Company (SIDPEC), which is targeting the price of EGP 9 per share. In addition, Ezz Steel targets EGP 8.20 per share. Also doing well are stocks belonging to Abu Qir for Fertilizers, which is targeting EGP 20 per share.

Stocks on the EGX70 EWI rose by 0.4% last week, to close at 1,875 points, whilst the EGX30 Capped rose 0.13%, closing at 11,786 points.

Last week, the market capitalisation reached EGP 616.8bn, down by 1.7% from the previous week’s EGP 627.4bn. Shares accounted for 26.3% of the total trading value, while bonds received 73.7%.

The market recorded a trading value of EGP 21bn, through 205,000 transactions on 1.9bn shares. This compared to a trading value of EGP 11.3bn at the end of last week, through 225,000 transactions executed on 2.7bn shares.

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