Mixed performances on EGX despite huge transactions

Fatma Salah
4 Min Read

The Egyptian Exchange (EGX) witnessed mixed performances during the trading session on Wednesday, despite the trading volume reaching about EGP 2bn. The main index EGX30 fell by 0.36% to 17,452 points, affected by the decline in the share of the Commercial International Bank.

The share of CITC closed down by 2.24%, to reach the level of EGP 52.35 per share, at the close of trading on Wednesday.

Mustafa Al-Kurdi, group head of the Arab African Securities Trading Company, said that the divergent rhythm will dominate the market during the remaining session of the week, and it is possible that we will see stronger performance during the week’s sessions, especially since the main index is trying to touch the level of 17,700 points.

Al-Kurdi predicted that if the main index of the Egyptian Exchange breaks the important resistance level at 17,700 points, a strong wave of rise will await it, especially in light of the strong trading.

He pointed out that the market is in dire need of basic incentives, especially the government IPO programme to pump new blood into the market from new securities and liquidity.

Al-Kurdi advised investors to keep 50% of the portfolio in case of liquidity, and to avoid marginal purchases.

The EGX70 increased by 0.73% to reach 3,013 points, and the broader EGX100 rose by 0.59% to 4,576 points, while the EGX30 Capped declined by 0.06% to 20,921 points.

Mohamed Abdel Hakim, head of the research sector at Ostoul, said that the performance of the indices varied slightly, as the main index declined, affected by the decline in the shares of the Commercial International Bank, which has the largest relative weight, as well as the shares of the Financial Group Hermes.

According to Mubasher information, the stock of EFG Hermes witnessed a decline of 1.42%, to reach the level of EGP 17.52 per share, at the close of trading.

Abdul Hakim expected that the main index would try to reach the level of 18,500 points, supported by the upcoming currency price liberalization.

He advised investors to keep stocks with good financial performance, and to focus on capital stocks.

The market witnessed trading values ​​of EGP 1.9bn, through the circulation of 434 million shares, by carrying out 70,700 buying and selling operations, after the shares of 200 listed companies were traded, 73 shares rose during the session, and the most rising shares were Food Industries – Domty by 10.6%, and shares Alexandria Mills and Bakeries by 10.22%.

The prices of 54 shares declined, and the most declining shares were GlaxoSmithKline shares by 7.8%, and Odin Financial Investments shares by 5.74%, while the prices of 73 shares did not change.

The market capitalization of listed shares decreased to EGP 1.12trn.

The net transactions of Arab and foreign investors tended towards selling, with net transactions of about EGP 5.27m, and EGP 236.4m, respectively, accounting for 8.56% and 9.46%, respectively, while Egyptians tended towards buying, with net transactions of about EGP 241.7m, accounting for 81.98%.

Individuals carried out 64.32% of the transactions, heading towards all purchases, as Egyptians and Arabs recorded a net purchase of EGP 98.49m, and EGP 5.55m net purchases, respectively, and foreigners recorded a net purchase of EGP 467,700.

Institutions captured 35.67% of the trading, heading towards selling, with the exception of local institutions, who recorded a net purchase of EGP 143.27m, while Arab and foreign institutions recorded a net sale of EGP 10.8m and EGP 236.9m, respectively.

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