In response to recent geopolitical changes, the main index turned negative, dropping 0.73% to settle at 29,401 points at the close of trading on Tuesday.
The EGX70 EWI rose 0.86% to reach 6,754 points, while the composite EGX100 rose 0.51% to reach 9,633 points. Conversely, EGX30 Capped decreased by 0.75% to end at 36,095 points.
Bassem Atala, head of Aman Securities, predicted that the EGX30 index would fluctuate between 27,500 and 30,000 points towards the end of this month.
Mid-week sessions often saw corrective action. This was evident as some stocks soared around 7% following recent weakness, prompting investors to take profits.
Atala advised investors to avoid margin buying, stressing that margin buying is unproven in the regional market in the current climate. Investors using personal funds are not affected by economic downturns and can wait for the market to stabilize. In contrast, margin trading can lead to forced sales by the company.
Trading volume for the day reached 4.5 billion Egyptian pounds, with 1.3 billion shares exchanged in 140,000 transactions. The activity followed the trading of shares in 207 companies. In the end, 89 stocks rose, led by National Housing Corporation (NHC), which soared 19.99%.
On the other hand, 70 stocks fell, with “North Cairo Mills and Bakeries” facing a significant decline of about 5.73%. 48 stocks remained stable, with a total market value of 1.98 trillion Egyptian pounds.
Financial analyst Dore Zidan predicts that the major index could test resistance at 29,600 points and could reach 30,500 points soon. She also identified an initial support zone starting at 28,500 points.
Zidane attributed the correction trend in the previous session to profit-taking, noting that the petrochemical sector continued to outperform despite moderate trading volumes.
Egyptian investors were mainly buying, with a net trading value of about 276 million Egyptian pounds (86.37%), while Arab and foreign investors were selling, with a net trading value of about 102 million Egyptian pounds. million Egyptian pounds (8.11%, 5.52%).
Individuals executed 76.96% of the transactions, with Egyptians making a net purchase of 5 million Egyptian pounds. Arab and foreign individuals preferred selling, with net transactions amounting to 9 million Egyptian pounds and 246,000 Egyptian pounds, respectively.
Trading by institutional investors accounted for 23.03%, with selling dominating, with the exception of domestic institutional investors who were net buyers of 271 million Egyptian pounds. Arab institutions and foreign institutions recorded net sales of EGP 93 million and EGP 174 million, respectively.
