Sideways trend grips Egypt’s stocks

Sideways trend grips Egypt’s stocks

 

By Ahmed Kamel

 

A stable monetary policy may boost the local stocks in the coming weeks as Egyptian retailers are expected to buy into the nation’s big caps. The benchmark index EGX30 may test 12,000 points on the back of a stabilized foreign exchange rate.

However, a sideways trend is expected to hit the local stock market in the medium term. Investors will keep an eye on the global stock markets and US dollar/euro trading this week.

As expected the main index slipped on a profit-taking mood last week.  The benchmark index EGX30 fell 2.46 per cent to 11,180 points. However, the broader indices EGX70 EWI and EGX100 EWI added 1.6 and 0.6 per cent to 1,849 and 2,748 points respectively.

Volume rose to LE11.3 billion last week, up from LE9.9 billion the previous week.

The market capitalization fell by LE3.1 billion, or 0.5 per cent, to LE627.4 billion, bourse data showed.

Excluding deals, Arabs were net buyers of LE39.2 million. Non-Arab investors were net sellers of LE283.8 million.

The textiles sector topped last week’s trading volume with traded stocks worth LE1.1 billion, market data showed.

The real estate sector ranked second with traded shares totaling LE1 billion.