EGX30 may test 11,200 points

 

EGX30 may test 11,200 points

 

By Ahmed Kamel

Egypt’s benchmark index may test 11,000 points in early trading this week. A bullish sentiment might lift the EGX30 index above 11,200 points. However, nappy profit taking is expected to trim the stock market’s gains by the end of the week.

Non-Arab fund managers are forecast to be bullish this month, driven by strong appetite into buying into equities across a number emerging markets, including Egypt.  The local stock market may get momentum from positive world markets.

The non-Arab investors were net sellers of LE15.39 billion ($980 million) in 2020, according to data from the Egyptian Exchange.

Moreover, volatility will persist as a broad sideways trend will likely impact most stocks over the coming weeks.

The main index EGX30 added 0.99 per cent to 10,952 points. The broader indices EGX70 EWI and EGX100 surged 0.35 and 0.88 per cent to 2,152 and 3,125 points respectively.  

Volume fell to LE9.1 billion ($580 million) last week on four trading sessions, down from LE11.8 billion the previous week. The Egyptian Exchange was closed on Thursday, marking the Coptic Christmas Day.

The market capitalization rose by LE9.3 billion, or 1.4 per cent, to LE660.2 billion, data from the Egyptian Exchange showed.

Locals, Arabs and non-Arabs accounted for 84.6, 6.3, and 9.1 per cent respectively, bourse data showed.

Excluding deals, non-Arab investors were net buyers of LE96.5 million. Thirteen sectors inched up during the first week of trading in 2021. The paper and packaging sector jumped 10.6 per cent, according to the stock market’s weekly report.

The basic resources sector rose by 5.5 per cent. The auto and industrial services and trade & distributors sectors added 4.9 and 4.4 per cent respectively, the report said. The IT, media and communication services gained 3.9 per cent. The real estate sector added 2.3 per cent.