Egypt, France airdrop aid to Gaza amid growing humanitarian crisis, global criticism of Israel    Supply minister discusses strengthening cooperation with ITFC    Egypt launches initiative with traders, manufacturers to reduce prices of essential goods    SCZONE chief discusses strengthening maritime, logistics cooperation with Panama    Egypt strengthens healthcare partnerships to enhance maternity, multiple sclerosis, and stroke care    Egypt keeps Gaza aid flowing, total tops 533,000 tons: minister    Egypt reviews health insurance funding mechanism to ensure long-term sustainability    Gaza on verge of famine as war escalates, ceasefire talks stall    Gaza crisis, trade on agenda as Trump hosts Starmer in Scotland    Egyptian president follows up on initiatives to counter extremist thought    Indian Embassy to launch cultural festival in Assiut, film fest in Cairo    Egyptian aid convoy heads toward Gaza as humanitarian crisis deepens    Culture minister launches national plan to revive film industry, modernise cinematic assets    Egypt will keep pushing for Gaza peace, aid: PM    I won't trade my identity to please market: Douzi    Sisi calls for boosting oil & gas investment to ease import burden    EGX to close Thursday for July 23 Revolution holiday    Egypt welcomes 25-nation statement urging end to Gaza war    Sisi sends letter to Nigerian president affirming strategic ties    Egypt, Senegal sign pharma MoU to unify regulatory standards    Two militants killed in foiled plot to revive 'Hasm' operations: Interior ministry    Egypt, Somalia discuss closer environmental cooperation    58 days that exposed IMF's contradictions on Egypt    Egypt's EHA, Huawei discuss enhanced digital health    Foreign, housing ministers discuss Egypt's role in African development push    Egypt reveals heritage e-training portal    Three ancient rock-cut tombs discovered in Aswan    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Egypt's Irrigation Minister urges scientific cooperation to tackle water scarcity    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Egypt shares seen moving sideways as CBE keeps interest rates on hold
EGX30 rises 2.35% in a week, hovers around all-time high
Published in Daily News Egypt on 30 - 12 - 2017

The Egyptian Exchange (EGX) is expected by analysts to move sideways after the Central Bank of Egypt (CBE) left interest rates unchanged at the December meeting of the Monetary Policy Committee (MPC).
A higher interest rate environment negatively affects stock market inflows, as investors tend to pump cash into banking sector assets.
Ayman Fouda, head of the capital market committee at the African Economic Council, forecasts the EGX to move sideways after the CBE decision.
The EGX's indices are likely to see sideways-to-declining performance after MPC's decison, Fouda highlighted, adding that the market is still waiting for positive news that pumps new liquidity into blue chips.
The EGX30 index may test the levels of 15,100 and 15,200 points, and see support at 14,900 and 14,800 points, he pointed out.
Fouda recommends medium-term and long-term investors to monitor stocks well and activate medium-term stop-loss points, in line with keeping the liquidity of investment portfolios to resume buying after the recent correction phase ends and new positive incentives appear after the New Year holidays.
The MPC maintained the overnight deposit rate at 18.75%, the overnight lending rate at 19.75%, the rate of the CBE's main operation at 19.25%, and the discount rate at 19.25%, according to a press release.
The committee attributed its decision to the decline of annual headline and core inflation in November 2017 for the fourth consecutive month to record 26% and 25.5%, after peaking in July 2017 at 33% and 35.3%, respectively.
"Tighter real monetary conditions supported the decline, which accelerated in November due to a favourable base effect. Nevertheless, inflation was affected during this period by continuous supply shocks related to fiscal consolidation measures, leading regulated price adjustments to account on average for 44% of monthly headline inflation, in addition to indirect effects on core CPI items," the bank said.
Meanwhile, Mohamed Gaballah, a market analyst at Pioneers Holding, expected the market to move sideways awaiting fresh stimulus after the CBE's decision.
The benchmark EGX30 index may maintain its upward trend as long as it is moving above 14,800 points, Gaballah noted.
The index has resistance at 14,700 points and an upside potential at 14,900 points, Gaballah added.
The EGX70 index is seeing a sideways performance, which will carry on over the coming period as blue chips attract more liquidity, the analyst noted.
EGX30 hits all-time high
The Egyptian Exchange (EGX) closed last week in the green zone, buoyed by the performance of blue chip stocks.
The benchmark EGX30 gained 2.35%, or 348 points, to close at 15,016.97 points, a new historical peak.
The EGX's benchmark will move sideways in the short-term, but it is projected to rise in both the medium- and the long-term, Ahmed Thabet, technical analyst at Jazira Securities Brokerage, said.
The main benchmark's trading volume came in at 512m shares in a week, with a turnover of EGP 1.9bn.
Market capitalisation closed at EGP 825.81bn at the end of the week, compared to EGP 815.46bn a week before.
The Commercial International Bank (CIB) gained 4.66% to EGP 77.46 after 4.9m shares were traded, generating EGP 372.4m.
CIB's stock sees support at EGP 70 and EGP 71, which it may break above but not in the current period, Thabet continued, noting that the stock may go up to between EGP 75 and EGP 77.
The small- and medium-sized enterprises EGX70 index rose 2.87% to 763.03 points during the week, while the EGX100 index was up 2.35% to close at 1,731.95 points.


Clic here to read the story from its source.