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Egyptian stock market faces corrective glide in direction of 26,000 capabilities

Market participants take into tale this corrective glide to be logical, given the sturdy gains witnessed by the Egyptian stock marketplace for the duration of 2023. However, the EGX30 index, which tracks the efficiency of the 30 most actively traded companies, experienced a decline of 1.67% for the duration of Monday’s session. It erased its morning gains, falling from 28,944 capabilities to 28,144.2 capabilities, with local institutions accomplishing revenue-taking. The web sell-off amounted to EGP 826.7m.

Hany Tawfik, an economic professional and Chairman of International Merchants Community, Inc., emphasizes that the recycling of liquidity from the Egyptian stock market into authorities debt instruments underscores the EGX’s transformation into a retailer of price for of us. The market is no longer any longer completely driven by the financial analysis of listed companies.

The EGX70 EWI, which measures the efficiency of medium and shrimp-sized companies, declined by 1.08%, settling at 6,544.9 capabilities. In the intervening time, the broader EGX100 EWI, monitoring the 100 most actively traded companies, saw a 1.31% decrease, settling at 9,284.2 capabilities.

Mohamed Abdel Hakim, Head of the Analysis Department at Ostoul Securities Brokerage, attributes the marketing tension on shares to the most modern rise in interest charges. Merchants possess redirected their liquidity in direction of authorities debt instruments.

Abdel Hakim anticipates a downward correction within the arrival duration, with the EGX potentially reaching the 25,000-point stage because of ongoing promoting pressures. He advises investors to mitigate dangers by warding off margin buying for the duration of this time.

Exact by means of Monday’s trading, a total of 764 million shares had been exchanged, amounting to EGP 3bn, for the duration of 78,600 transactions. Among the many shares traded, 29 rose, 113 fell, and 63 remained unchanged.

CI Capital Brokerage’s study means that the solid momentum of the stock market will decelerate within the shut to duration of time because of rising interest charges. Merchants are inclined to shift their point of interest in direction of fastened-profits instruments reasonably than directing funds completely to the stock market.

By the usage of particular person shares, loads of experienced fluctuations:

·        Decliners integrated Talaat Moustafa Community Maintaining, Qalaa Maintaining, Ezz Steel, and Palm Hills falling by 2.59%, 2.51%, 0.44%, and a pair of.54%, respectively, to shut at EGP 62.5, EGP 3.49, EGP 65.5, and EGP 3.84, respectively.

·        The absolute top gainers had been Golden Tex and Egyptian Accommodations Company, rising 19.ninety nine% and 10.04% to resolve at EGP 32.71 and EGP 5.59, respectively. Shares of Ibn Sina, Zahraa Maadi, and New Ismailia additionally rose by 5.84%, 5.3%, and 4.9%, respectively, to resolve at EGP 2.9, EGP 7.55, and EGP 21.39, respectively.

·        The absolute top losers for the duration of the session had been Scientific Packaging, down 6.ninety nine%, while shares of Telecom Egypt, Credit Agricole Monetary institution, and Ataqa fell by 5.16%, 4.21%, and 4.12%, respectively.

Mostafa Al Kurdi, Community Manager at Arab African International Securities, acknowledged that the most predominant EGX30 index is anticipated to undergo a solid corrective glide if the most predominant make stronger stage of 26,400 capabilities is damaged, looking forward to it to poke between a massive sideways vary of 27,000-30,000 capabilities.

Al Kurdi added that the corrective actions are a reflection of the solid gains viewed by the Egyptian Alternate over the final yr. He additionally added that breaking the 30,000-point stage upwards is a sure indicator for the tip of the corrective glide, advising investors to point of interest on shares with solid financial positions and steer clear of margin purchases.

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