EGX30 to test its strength by breaching 10,000 points level this week

Alyaa Stohy
3 Min Read
A general view of the Egyptian Exchange (EGX) in Cairo August 18, 2013. Egypt's stock market fell sharply on Sunday as it resumed trading after hundreds of people were killed in a crackdown by the army-backed government on supporters of the Muslim Brotherhood. Banks and the stock market reopened for the first time since Wednesday's carnage, with shares rapidly falling 2.5 percent. REUTERS/Louafi Larbi (EGYPT - Tags: POLITICS CIVIL UNREST BUSINESS)

The Egyptian Exchange (EGX) aims to test its ability to rise above the 10,000 points level, and continue trading above this level during the week..

Commercial International Bank Egypt (CIB) is set to play a major role in supporting this index’s performance, should Bulls manage to hold, which would have a positive impact on the market performance. 

Mohamed Othman, Head of the Technical Analysis Department at Pharos Holding, said that by shedding light on the EGX30 Index’s hourly chart, it is still trading below the resistance level of 10,140 points, which is considered a short-term trigger.

A successful breach above the latter level would increase the chance of witnessing an upward move and would pave the way for the index to reach 10,380 points.

“On the other hand, failure to retrieve above 10,140 points would lead to further decline where the next support lies at 9,800 points,” Othman added. 

He advised market investors to deal with each stock separately, be highly selective to outperforming shares, and avoid marginal exposure until a consistent buying power reappears.

The benchmark EGX30 closed at 9,977.9 points last week, recording a decline of 0.76%. Meanwhile, the EGX70 EWI posted a 2.15% gain, concluding last week at 2,384.44 points, while the S&P index rose by 3.45%, and concluded at 1,722.75 points.

The EGX30 capped rose by 0.57% and concluded at 12,545.84 points, while the EGX100 EWI rose by 2.52%, and concluded the period at 3,333.71 points.

Total market capitalisation reached EGP 643.0bn at the end of the period, representing an increase of 1.31% over the last week. The total value traded recorded EGP 20.2bn, while the total volume traded reached 2,844 million securities executed over 264,000 transactions last week. 

For the week before last, the total value traded recorded EGP 14.3bn, while the total volume traded reached 3,665 million securities executed over 288,000 transactions.

Stocks trading accounted for 46.06% of the total value traded of the main market, while the remaining 53.94% were captured by bonds over the week.

Egyptians represented 82.0% of the value traded in listed stocks after excluding deals during the period. Foreigners accounted for 9.5%, while Arabs captured 8.4%. 

Foreigners were net sellers, with a net of EGP 122.0m, whilst Arabs were net buyers, with a net of EGP 3.8m, after excluding deals in listed stocks.

Since the beginning of the year Egyptians represented 81.6% of the value traded in listed stocks after excluding deals, whilst Foreigners accounted for 11.3%, while Arabs captured 7.1%. 

Foreigners were net sellers by EGP 2,075.5m, and Arabs were net buyers by EGP 454.0m, after excluding deals in listed stocks since the start of the year.

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