Egypt stocks take sideways trend

 

Egypt stocks take sideways trend

 

By Ahmed Kamel

 

Calm trading is expected this week as the stock market begins 2021 trading on Sunday. However, foreign selloffs are forecast to continue in January as global funds redirect their asset portfolios across emerging markets. 

The benchmark index may test 11,000 points as Arab investors buy into Egypt’s blue chips. Ups and downs will continue in the coming months as the market needs fresh incentives to attract non-Arab funds.

A sideways trend within a range of 11,200-10,400 points will grip the local stock market in the first quarter of 2021.

The EGX30 index rose by 1.5 per cent to 10,845 points. The broader indices EGX70 EWI and EGX100 surged 4.35 and 4.16 per cent to 2,145 and 3,097.82 points respectively.  

Volume rose to LE11.8 billion ($751.5 million) last week up from LE11.4 billion the previous week. The market capitalization added LE12.4 billion, or 1.9 per cent, to LE650.9 billion, market data showed.

The global depository receipts (GDRs) of Commercial International Bank increased to 146.494 million, according to a report released by the Egyptian Exchange.

The GDRs of Amer Group and GB Auto fell to 226.187 million and 175.223 million respectively. Telecom Egypt’s GDRs slipped to 169.640 million, the report said. 

Trading on stocks accounted for 66.5 per cent of the market’s volumes in December, market data showed. Trading on bonds stood at 33.5 per cent.

In December, locals, Arabs and non-Arabs accounted for 85, 6.5 and 8.5 per cent of trades respectively, market data showed. Arabs were buyers of LE354.7 million last month, while non-Arab investors were net sellers of LE797.1 million.

In 2020, locals, Arabs and non-Arabs accounted for 77.4, 6.6 and 16 per cent respectively, data from the Egyptian Exchange showed.

Arab and non-Arab investors were net sellers of LE537.1 million and LE15.39 billion, respectively, in 2020.