Daily News Egypt

Temporary corrective decline limits EGX rise this week - Daily News Egypt

Advertising Area




Advertising Area

Temporary corrective decline limits EGX rise this week

EGX30 decreased by 0.7% last week, closing at 10,808 points


Dealers in the Egyptian Exchange (EGX) have expected that the market will witness further testing of the resistance level this week, which the benchmark index has been trying to penetrate during the last period. 

If EGX30 managed to penetrate that level, it will be the result of the positive movement of the leading stocks, on top of which is the Commercial International Bank (CIB), whose share has the largest relative weight in the market.

EGX30 decreased by 0.7% last week, closing at 10,808 points, while EGX70 EWI rose by 1.3% to settle at 2,908 points.

Haitham Abdel Sameea, Head of Technical Analysis Department at Ostoul Securities, explained that EGX30 capped was going through a strong corrective decline through which the index was trying to cling to the support level of 13,100 points, to regain purchasing power. 

The above stability retargets the levels of 13,225, then 13,300, and 13,432 points. As for stability below the level of 13,100 points, it retargets the levels of 12,950, ​​then 12,830, and 12,600 points.

Abdel Sameea added that the Tamayuz index for small and medium enterprise returned to the corrective decline, trying to build on its highest level of 2,900 points. The stability above retargets the new historical level of 2,948 points. The continuation of the upward trend happens as it targets the levels of 3,000; 3,100; and 3,450 points. As for profits, they mean stability below the level of 2840 points. A downward trend targets 2,765, 2,710, 2,680, and 2,615 points.

Meanwhile, Mohamed Ismail, Head of Technical Analysis at Roots Securities Brokerage Company, stated that EGX70 EWI is trading in a short-term bullish trend, which witnessed a strong and sharp rise during the last period, without going through any corrective movement, and reached at the resistance level of 2,900 points, which represents 161% Fibonacci ratio for the last major down wave, which led to the emergence of some profits, but the selling force appeared again bringing the support test to 2,710 points.

He urged dealers to gradually build special purchasing centers for medium-term investors without using margin buying in these operations during the coming period.

EGX30 capped declined by 1.1%, stable at the level of 13,099 points, and EGX100 rose by 0.6%, stable at the level of 3,870 points.

The market recorded trading values ​​of EGP 34.2bn at the end of last week, through the circulation of 2.9 billion shares, executing 292,000 buying and selling operations, compared to the previous week’s trading, which amounted to EGP 22.2bn and the amount of 2.7 billion shares traded, through 238,000 operations, to stabilize the market capital For listed shares at the level of EGP 715.2bn.

Foreign transactions recorded a net purchase of EGP 63.3m, with an acquisition rate of 87.7% of buying and selling shares.

Shares accounted for 32.3% of EGX trading during the last month, while the value of bonds trading accounted for 67.7% of the transactions.

Topics: EGX

Advertising Area

https://www.dailynewsegypt.com/2021/08/22/temporary-corrective-decline-limits-egx-rise-this-week/
Breaking News

No current breaking news

Receive our daily newsletter
Subscribe