Egypt’s benchmark index may test 11,300 points

 

 

Egypt’s benchmark index may test 11,300 points

 

 

By Ahmed Kamel

 

Motivated by positive macroeconomic indications, Egypt's indices will likely rise in the coming weeks. Local retailers and Arab institutions may extend their buying into a wide range of equities, lifting the benchmark and broader indices.

The benchmark index may test 11,300 points this week. However, a prolonged sideways trend is expected to continue in the medium term.

Foreign fund managers will keep an eye on the dollar’s exchange rate in Egypt, where the pound may get a boost in the coming months.  

The main index EGX30 gained 0.31 per cent to 11,015 points. The broader indices EGX70 EWI and EGX100 EWI jumped 3.9 and 3 per cent to 2,088 and 3,088 points respectively.

Volume fell to LE10 billion (around $641 million) from LE12.3 billion the previous week.

The market capitalization rose by LE6.5 billion, or 1.02 per cent, to LE642.9 billion, market data showed.

Locals, Arabs and non-Arabs accounted for 78.9, 7.2 and 13.9 per cent of trades respectively, bourse data showed.

Non-Arab investors were sellers of LE324 million last week. Arabs were net buyers of LE109.6 million, according to market data.

Arab and non-Arab investors have been net sellers of LE818 million and LE14.67 billion since the beginning of the year, bourse data showed.

Retailers and Arab investors lifted the local stocks in November in the wake of positive macroeconomic indications.  

The market capitalization added LE31.1 billion, or 5.1 per cent, to LE636.5 billion in November, the Egyptian Exchange said in its monthly report.

Traded volumes totaled LE56 billion in November, compared to LE48 billion a month earlier. In November, locals Arabs and non-Arabs accounted for 82, 7 and 11 per cent of trades respectively. 

Non-Arab investors were net sellers of LE1 billion in November, while Arabs were net buyers of LE215 million.