Capital market experts expect that the Egyptian Exchange (EGX) will continue its sideways movement between the support level of 11,300 points and the resistance level of 11,750 points this week.
The benchmark index EGX30 closed at 11,431.24 points last week, an increase of 0.82%. EGX70 EWI posted 3.31% gain concluding the period at 2,082.7 points, while S&P rose by 2.53% and concluded the period at 1,826.43 points.
EGX30 Capped rose by 1.52% and concluded at 13,526.48 points, while EGX100 EWI rose by 2.93% and concluded the period at 3,059.58 points.
Total market capitalization reached EGP 721.7bn last week, an increase of 1.59% over the week before last.
Mohamed Othman, Head of technical analysis at Al Ahly Pharos, said that the EGX faces the first resistance at 11,500 points. In case of a successful break above this level, it would be the first sign that bulls started to be involved.
He added that we need to see a clear breach above 11,730 points with a good market breadth to ensure that the correction has come to an end.
Meanwhile, the first minor support level to watch lies at 11,250 points, followed by the more important level at 11,150 points.
Othman advised short-term investors to control their risk by reducing positions at the rebound, and for those who would like to hold may trail the protective stop levels for each stock to the nearest support levels.
The total value traded recorded EGP 10.7bn through 188,000 transactions on 1.7 billion securities last Week, compared to EGP 22.9bn trade value through 192,000 transactions on 1.4 billion securities in the week before last.
Stocks accounted for 43.43% of the total trade value in the main market, while the remaining 56.57% came from bonds.
Egyptians accounted for 70.8% of the trade value in listed stocks after excluding deals. Foreigners accounted for 17.7%, while Arabs captured 11.5%.
Foreigners were net sellers by EGP 87.9m, while Arabs were net buyers by EGP 199.7m, after excluding deals in listed stocks.
Since the beginning of the year, Egyptians represented 82.7% of the trade value in listed stocks after excluding deals. Foreigners accounted for 10.2%, while Arabs captured 7.1%.
Foreigners were net sellers by EGP 5.59bn, while Arabs were net buyers by EGP 2.37bn, after excluding deals in listed stocks during this year.