A horizontal trend dominated the performance of the Egyptian Exchange (EGX) in Sunday’s session, recording a decline in liquidity levels to about EGP 370m due to the varying performance of indicators.
The main index of the market, the EGX30, decreased by 0.21% at the end of the trading session to reach 9,986 points, while the EGX50 index of equal weights rose by 0.49% to reach 1,732.5 points.
Mohamed Hassan — Managing Director of Blom Egypt Asset Management — expected the trend controlling the main index of the EGX to move between 9,800 to 10,300 points over the coming period.
Furthermore, the EGX70 index recorded an increase of 1.02%, stabilising at 1,753.6 points, and the capped EGX30 index increased by 0.8% to 12,298.6 points, while the broader EGX100 index rose by 0.79% to 2,629 points.
Additionally, the market recorded trading values of EGP 347.4m through the circulation of 277.5m shares with the implementation of 21,600 buying and selling operations. After the shares of 186 restricted companies were traded, 71 of them rose, and the prices of 30 securities decreased, while the prices of 85 shares did not change.
Hassan pointed out that the market needs strong incentives in order to be able to break through the upwards resistance, adding that the minister of investment has given the investment portfolio a special priority.
He also noted that the performance of the EGX70 index was due to the meagre profitability of companies, advising long-term investors to take advantage of the current prices to form purchasing positions.
Hossam Eid — Investment Manager at International Securities Brokerage — said that the EGX30 fell below the main support level of 10,000 at the end of trading due to the negative performance of some of the leading stocks.
He added that if the main index does not succeed in returning above the 10,000-point level again, it will test the 9,800-point support level.
Furthermore, Eid said that the EGX70 index is heading to test the main resistance level of 1,760 points, then 1,800 points in the event that the positive performance continues.
In related news, the market capitalisation of listed shares declined to EGP 659.9bn.
The net transactions of Egyptians alone tended to buy, recording EGP 13.9m with a percentage of 88.01% of buying and selling transactions on shares, while the net transactions of foreigners and Arabs tended to sell, recording EGP 8m and EGP 5.8m, respectively, with acquisition rates of 3.91% and 8. 08% respectively.
Individuals carried out 80.24% of the transactions, heading towards selling, with the exception of Arab individuals, recording a net purchase of EGP 1.9m.
Institutions’ shares of the trading recorded 49.99% towards selling, except for Egyptian institutions, with net purchasing worth EGP 30.1m. Foreign and Arab institutions recorded net selling of EGP 7.9m and EGP 7.8m respectively.