Global and local stock markets fretted about expectations of a US Federal Reserve’s interest rate hike with rising inflation fears, as concerns escalated over a global financial crisis.
The Dow Jones Industrial Average fell 0.66% to 33824 points, in trading today, Tuesday, while the broader S&P 500 fell 0.67% at 4267 points, while the Nasdaq fell 1.07% to 12865 points.
The main index of the Egyptian Exchange, EGX30, rose by 1.27% at the close of trading today, Tuesday, at the level of 10,682 points, while the EGX70 EWI index declined by 0.98% to the level of 1813 points.
Mohamed Hassan, managing director of Bloom Egypt Asset Management, expected the sideways trend to dominate the stock market’s trading during the remaining sessions of the month of Ramadan, pointing out that the pace of trading will continue to calm down until the end of the holiday season.
He suggested that the EGX30 would move between the levels of 10,680-10,800 points during the two sessions, pointing out that the rise of the main index during today’s trading session was supported by the performance of the Hermes and CIB shares, coinciding with the approaching periodic review of the Morgan Stanley Index.
Hassan explained that it is possible for the Hermes stock to join the Morgan Stanley index, and Fawry to exit after the heavy selling on the stock, and advised investors to trade in the short term, and postpone the formation of purchasing positions.
The EGX30 capped index rose by 0.94% to the level of 13,114 points, while the broader EGX100 index fell by 0.49%, stable at the level of 2754 points.
The market recorded trading values of EGP 708m at the end of today, Tuesday, through the circulation of 232.1 million shares, by implementing 32,000 buying and selling operations, after 183 shares were traded, 33 of them rose, and about 75 fell, while the prices of 75 shares did not change. The market capitalization of the listed shares stabilized at the level of EGP 694bn.
Mustafa Al-Kurdi, head of a group at the Arab African Company for Securities, expected that the market would witness an improvement in the trading values again after the end of the holiday season, with the third index moving between 10,460-10,600 points.
He pointed out that the market is trading at a profit multiplier of 5 times compared to international markets that are trading at a large profitability multiplier, as it is trading at its lowest levels recently.
He advised investors to be selective, to choose valuable stocks with cash dividends, and to stay away from marginal buying.
Foreigners’ transactions alone tended to buy with a value of EGP 44.57m with a rate of 23.96% of buying and selling transactions on shares and an acquisition rate of 70.07%.