As the Egyptian Exchange (EGX) prepares for a shortened trading week after the holidays, it faces geopolitical upheavals that are likely to cast a shadow on its performance in future trading.
Last week, the benchmark index EGX30 showed a small decline of about 0.01%, ending at 28,504 points. In contrast, EGX70 EWI rose by his 0.94%, reaching 6,541 points.
The EGX30 Capped Index rose approximately 0.29% to 34,945 points, while the composite EGX100 EWI rose 0.89% to 9,311 points. The S&P index also recorded a slight increase of 0.16%, ending at 5,716 points.
Hossam Eid, chairman of Cairo National Investment Securities, said that if the EGX30 can maintain stability above the key support level of 28,000 points, the EGX30 could challenge the key resistance level of 29,000 points. He said there is a possibility that he could potentially challenge for 30,000 points.
He added that recent international and regional geopolitical developments could shake the trajectory of the Egyptian stock market in the near term, causing the index to decline by around 1,000 points. . Nevertheless, a recovery is on the horizon, boosted by strategic moves by Egyptian and Arab financial institutions to open financial hubs in sync with the disclosure of quarterly financial statements by the majority of listed companies, indicating solid business activity. is approaching.
Investors avoid volatile and fast-trading stocks and focus on leading stocks known for favorable returns and consistent profit expansion to minimize risk and adhere to specified stop-loss criteria It is recommended that you do so.
The Egyptian stock market closed last week with 189,000 trades worth 1.3 billion shares worth approximately 5.3 billion Egyptian pounds. This is in contrast to the previous week’s trading volume of 13.9 billion Egyptian pounds for approximately 2.8 billion securities in 434,000 trades. The market capitalization of listed companies increased by 1.16% and reached EGP 1.93 trillion.
Mohamed Farij, head of technical analysis at El Suk Securities Trading, expects the major index to test a key resistance level at 28,900 points, with buying momentum driven by recent regional events. We predict that if the selling pressure is offset, the price could rise to 29,500 points.
In Monday’s trading, a decline is expected due to the recent developments in the Middle East, leading to sell-offs and withdrawals, exploring key support areas for the index at 27,900 points and then 27,600 points.
Investors are advised to use their foresight, avoid margin trading, and reduce positions with stop-loss intervals ranging from 26,400 points to 26,300 points.
Excluding post-trade transactions, Egyptians accounted for 49.6% of all transactions in listed stocks, foreign investors accounted for 5.6%, and Arab investors accounted for 4.8%. Foreign traders recorded net sales of 72.7 million Egyptian pounds, while participants from Arab countries recorded net sales of 111.7 million Egyptian pounds.
Since the beginning of the year, taking into account trading exclusions, Egyptian trading has accounted for 88.4% of the traded value of listed stocks, with foreigners and Arabs accounting for 5.2% and 6.4%, respectively. Foreign companies have realized net acquisitions amounting to approximately EGP 2.8 billion, while Arab traders have shown net disposals of listed shares totaling approximately EGP 1.67 billion, excluding transactions.
