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Market Report: Wave of optimism after another bullish day Market turnover reaches highest level in weeks on strong foreign presence and sustained small caps interest
An upswing in market activity fuelled a 0.48 rise in Egyptian stocks on Tuesday, with the benchmark index closing at 4,957.68 points in its second consecutive day of growth. This came after the EGX30 dropped to its lowest level in two years on Sunday. "Trading volume and trading value are relatively high which is a good sign. It makes me anticipate the upward trend will continue for a while," says Nael Sedqy, equity sales trader at Naeem Brokerage. The upturn came despite the week's ongoing sectarian clashes and political unrest. Tuesday's market turnover reached LE538.8 million, a level not seen for weeks. But for one session, turnover has hovered around the LE400m mark since the reopening of the Bourse after the revolution. Sedqy believes there is a good momentum and the market will soon reach a new trading range, attaining the "resistance level" of 5,100 points. "Beyond the market caps, the market has many small opportunities in the short term. This is very good taking into consideration the country's circumstances," he says. Foreigners again accounted for a high level of trade -- almost 50 per cent -- and were net-buyers of LE5.46m worth of stock. Institutions ended the session as net-buyers recording while individuals closed as net-sellers. "I received many buy calls from foreigners about CIB shares, which is a good sign. I think investors see its low price as a good opportunity. This is a share with high upside potential," says Sedqy. Shares in property developer SODIC were also up, exceeding a strong resistance point of LE19.5 per share."Many investors wanted to buy the shares for the buy-out dividends it just announced," says Sedqy. Seven market sectors ended the day in the green, five in the red and five remained unchanged. "I can sense as a trader that the investor's psychology is getting better than in previous weeks. If we look at the EGX70, we see trading was active on small caps on Tuesday," says Sedqy. The broader EGX70 rose 0.11 per cent.
