The Egyptian Exchange (EGX) has not been affected by the issuance of high-interest savings certificates by banks, following the 2% increase in basic interest rates last Thursday to curb inflation.
The EGX continued on Monday to rise for the second consecutive session, driven by the good performance of the leading stocks.
EGX30 increased by 2.17% to 17,056 points, led by the largest stock of the Commercial International Bank that closed at EGP 53.
Mohamed Fareeg, head of the technical analysis department at Tropicana Brokerage, highlighted the upward trend in the EGX, despite the issuance of high-yield bank certificates, explaining that the yield was not comparable to the current inflation rate.
It is likely that EGX30 will test the level of 17,750 points, supported by the high trading values witnessed by the stock exchange during the current period, explaining that if the exchange rate is liberalized again, the index will achieve new historical values higher than the historical peak of 2018, the level of 18,550.
He explained that the chemicals sector is the winning horse in the current period, and that the majority of the sector’s shares rose strongly, indicating that the CIB’s share exceeded its resistance level, which will be the signal for the launch of the EGX30.
He advised investors to maintain and form purchasing positions in case of decline, taking advantage of the favourable opportunities in the market.
EGX70 increased by 1.88% to 2,900 points, and the broader EGX100 increased by 2.04% to 4,388 points, and the EGX30 Capped recorded an increase of 2.23% to 20,355 points, and the market capitalization of listed shares rose to EGP 1.088trn.
Hossam Eid, director of the investment sector at Cairo National Securities Brokers, attributed the 362-point increase in EGX trading to the positive performance of most of the leading stocks and the continued tendency of financial institutions towards buying, and the increase in financial positions in leading stocks, especially foreign and Arab financial institutions.
He explained that the stability of the main index above the level of 17,000 points may push it to test and restore the main resistance level, which was 17,300 points, then the second resistance level, which is 17,650 points, supported by the continued activity of the leading stocks, and in the event that profit-taking and correction operations appear in the leading stocks near the main resistance level of the main index and not The success of the main indicator in maintaining and stabilizing above the main support level, which is 17,000 points, may lead to testing the second support level, which is 16,800 points.
He added that EGX70 also settled in the green zone at the end of the trading session, and closed up by 53.45 points, thanks to the positive performance and rise of most small and medium stocks and the fast trading, despite the trend of Egyptian and Arab individual investors towards selling and reaping capital profits. The main support level, which is 2900 points, may push it to test the main resistance level, which is 2960 points, supported by the continued activity of small and medium stocks and fast trading.
In the event that the EGX70 index does not succeed in maintaining the main support level, it may head to test the second support level, which is 2860 points.
The market witnessed trading values of EGP 2.47bn, through the trading of 512 million shares, by carrying out 79,700 buying and selling operations, after the shares of 197 listed companies were traded.
The prices of 27 shares fell, and the most declining share was the General Company for Land Reclamation, Development and Reconstruction by 3.10% and Taaleem Management Services by 3.02%, while the prices of 64 shares did not change.
The net transactions of Egyptian and Arab investors tended towards selling, with net transactions of about EGP 105.6m and EGP 16m, accounting for 84% and 8.16%, with the exception of foreigners, who tended to buy, with net transactions of about EGP 121.4m, accounting for 7.82%.
Individuals carried out 69.22% of the transactions, heading towards selling, as Egyptians and Arabs recorded a sale of EGP 102.4m, and EGP 39.4m net sale, respectively, with the exception of foreigners who recorded a net purchase of EGP 882,500.
Institutions captured 30.7% of the trading, heading towards buying, as Arab and foreign institutions recorded net purchases of EGP 23.3m and EGP 120.5m, with the exception of local institutions, who recorded net sales of EGP 3m.