EGX30 to remain under pressure

 

EGX30 to remain under pressure

 

As foreign funds continue their selloffs, Egypt’s main index will remain under pressure in the coming two weeks. A sideways is expected to persist in the remaining days of 2020, and probably will continue through the first quarter of 2021.

As forecast, the benchmark index remained above 10,600 points despite selloffs of non-Arab investors last week.  All indices ended in the red and most market sectors were in the red last week.

The textiles and durable goods sector fell by 6.2 per cent, according to data from the Egyptian Exchange. The tourism sector shed 2.2 per cent.  

The real estate and construction sectors plunged 2.1 and 1.9 per cent respectively, market data showed.

The country’s main index EGX30 fell by 1.3 per cent to 10,844 points. The broader indices EGX70 EWI and EHX100 slipped 1.28 and 1.29 per cent to 2,066 and 3,001 points respectively.  

Volume rose to LE14.1 billion ($903 million) last week up from LE14 billion the previous week. The market capitalization fell by LE4.5 billion, or 0.7 per cent, to LE645.7 billion, market data showed.

Arabs were buyers of LE47.7 million last week, while non-Arab investors were net sellers of LE276.7 million. Locals, Arabs and non-Arabs accounted for 84.6, 6 and 9.4 per cent of trades respectively, market data showed.

Arab and non-Arab investors have been net sellers of LE571.7 million and LE15.21 billion, respectively, since the beginning of the year, according to bourse data.

The Egyptian Exchange said in a report that the global depository receipts (GDRs) of Palm Hills rose to 709.491 million. The GDRs of Amer Group and Telecom Egypt inched up to 237.17 million and 169.641 million respectively.

The GDRs of Commercial International Bank and Edita increased to 142.454 million and 122.628 million respectively, according to the stock market’s report.