EGX sees downturn amid low trading volume

The Egyptian Exchange (EGX) experienced a downturn following a brief surge, as profit-taking and sales, predominantly by Egyptian and Arab investors, led to a decline. The market’s momentum was hindered by low trading volumes and insufficient buying power.

Sameh Gharib, head of the senior clients department at Arabeya Online, noted that selective purchasing in certain stocks resulted in uneven market movement. He observed that small and medium-sized enterprise stocks were more agile than those in the main index.

Gharib attributed Tuesday’s downturn to profit-taking after Monday’s sharp increase, suggesting it doesn’t necessarily predict future declines.

He forecasts a modest drop in Wednesday’s early trading, followed by a recovery, aiming for the 28,500-point mark, with a subsequent target of 29,500 points. The main index’s secondary and primary support levels are at 2,700 and 26,300 points, respectively.

The EGX30 index fell by 1.28% to 27,934.36 points, while the EGX70 EWI saw a minor decrease of 0.05% to 6,400.39 points. The broader EGX100 EWI dropped by 0.32% to 9,096.59 points, and the EGX30 Capped declined by 1.04% to 34,113.15 points.

Mohamed Freij, head of technical analysis at ElSuk Brokerage, mentioned the market’s short-term lateral trend, with the 70-point index outperforming the 30-point index and aiming for 6,800 points, considering the 7,100-point level pivotal.

Freij highlighted the petrochemical sector’s gradual improvement, with promising prospects for Sidi Kerir, KEMA, and the Alexandria Mineral Oils Company (AMOC) stocks, alongside a positive outlook for the real estate sector.

The market’s trading value stood at EGP 2.9bn, with 577.2 million shares traded across 90,900 transactions involving 207 listed companies. By the end, 69 stocks rose, led by Arab Real Estate Investment (ALICO) at 19.94%.

Conversely, 72 stocks declined, with GB Corporation dropping the most by 6.38%. The prices of 66 stocks remained unchanged, and the market capitalization reached EGP 1.87tn.

Egyptian and Arab investors leaned towards selling, with net transactions totalling EGP 87.1m and EGP 105.5m, respectively, while foreign investors were net buyers at EGP 192.6m.

Individuals conducted 70.79% of transactions, with foreign individuals buying net EGP 5.4m. Conversely, Egyptian and Arab individuals sold net EGP 64.4m and EGP 10,500, respectively.

Institutions represented 29.2% of trades, with Egyptian and Arab institutions selling net EGP 22.6m and EGP 94.9m, respectively, while foreign institutions bought net EGP 187.18m.

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