Trump says US election winner might not be known for months    Earthquake of magnitude 5.2 strikes northeastern Iran near Turkmenistan border: Local media    Preview: Ahly's game against Tanta could mark Weiler's league swansong    Germany confirms two more African swine fever cases in wild boar    Egypt's Assiut, Sohag int'l airports receive first Saudi Airlines flights since resumption of air traffic    Bale says he has no regrets after leaving Real Madrid    Southern French city of Marseille rebels against COVID-19 shutdown    Lionel Messi lashes out at Barcelona for selling Luis Suarez    Kremlin says EU move not to recognise Lukashenko amounts to meddling in Belarus    Egypt's central banks cuts interest rates by 50 bps    Saudi Arabia suspends India flights due to coronavirus, sources say    'It's important to show our ingenuity': Nigerian collector promotes local artistic heritage amidst Black Lives Matter    EgyptAir receives 11th Airbus A220-300 from Canada    3 policemen, 4 prisoners killed in Cairo jailbreak attempt    Last-minute bids    Wust El Balad band gives a concert at the Fountain theatre    Khan Almaghraby gallery group exhibition is a must go    A farrago of Brotherhood lies    Egyptian insurance companies' premiums 9.6% up in five months    Egypt's President Sisi names new head of anti-corruption watchdog    Egypt's offers 18 bln pounds T-bills on Sunday    EgyptAir offering discounts for some international flights    Egypt records 212 new coronavirus cases, 14 deaths on Saturday    Egypt to require PCR coronavirus tests for airport travelers    Egypt sends 125 tonnes of glass by sea to Beirut    Legend Messi officially wants to leave Barcelona, hands transfer request    Global smartphone sales drop 20% in Q2, yet Apple's iPhone sales steady    Sisi: Egypt keen on establishing development projects with Iraq, Jordan    Egyptian megastar Amr Diab releases new hit music video    Making of Harry Potter will be available for fans at new park in Tokyo    Egypt's Senate elections official results to be announced Wednesday    Netflix Egypt is bringing megastar Amr Diab back with a new original    Egypt reopens Rafah border crossing for first time since April    Egypt's senate elections 2020 trending on social media in few days    African Champions League final will be played on Oct. 16-17, CAF says    No room to delay Egyptian Premier League games – EFA's board member    The Facebook Preacher's Search for Fame, and Egypt's Economy    Egypt calls on UNSC to address oil spill risks off Yemen coast    Egypt economically strong in face of COVID-19, reforms ongoing: International Cooperation Minister    Arafa Holding reports $144,000 COVID-19-related losses in April    Egypt's efforts in Libya to activate free will of Libyan people: Al-Sisi    Hyksos campaigns were internal takeover, not foreign invaders: study    COVID-19 affects Egypt sporting clubs    COVID-19 will soon turn to seasonal like swine flu: Presidential Health Advisor    ‘Egypt's Support' coalition convenes to discuss its Senate election list    Robbery attempt leads to discovery of Ptolemaic monuments in Qena    Flouting international guidance, Ethiopia unilaterally starts filling its Nile dam    Zaha speaks out after online racial abuse    

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

Egypt shares expected to move sideways on profit-taking, await fresh stimulus
EGX30 falls 1.56% or 240.27 points in a week, records worst weekly losses in 2018
Published in Daily News Egypt on 27 - 01 - 2018

Egypt shares are expected by analysts to move sideways amid a profit-taking streak by investors to book gains from a sustained rally in the past few weeks, awaiting fresh catalysts to resume its upward trajectory.
The market is currently pressured by profit-taking by local and Arab institutional investors, head of the capital market committee at the African Economic Council, Ayman Fouda, said in a recent research note.
The EGX30 index has a short-term resistance at 15,414 and 15,470 points, while it has support at 15,260 and 15,150 points, Fouda highlighted.
The small- and medium-caps EGX70 index has a short-term resistance at 850 and 858 points, and has an upside potential at 885 points, he pointed out, adding that the index has support at 840 and 832 points.
Fouda recommended investors monitor stocks and partially allocate profits near significant resistance levels, in line with holding onto liquidity to rebuild purchasing centres on stocks with positive news near support levels.
Furthermore, head of technical analysis department at Arabeya Online, Michael Armia, said that the EGX30 index is still moving upwardly as it has resistance at 15,400, 15,615, and 15,850 points and has support at 15,360, 15,100, and 15,000 points.
The EGX70 index is also rising and hovering around the levels of 885 and 942 points, Armia continued.
Profit-taking movement continued across the week, as the main index approached the support level of 15,000 points, according to financial analyst Saed El-Fekky.
Investors are anticipating the next meeting of the Monetary Policy Committee (MPC) of the Central Bank of Egypt (CBE) and its decision on interest rates, which led to worries among traders as the CBE is expected to lower rates after five hikes last year, he added.
The EGX30 will target the level of 15,300 points, and then resistance level at 15,500 points, El-Fekky indicated.
The market is likely to take a temporal pause from the upward trend, awaiting new market-boosting catalysts and liquidity, he added
The benchmark EGX30 index is expected to see a limited sideways move between 15,000 and 15,300 points until new catalysts push the stock market towards stability and boost liquidity, El-Fekky noted.
The new catalysts are likely to push the indices and stocks of the EGX to new levels, El-Fekky added.
The positive vision is forecasted to continue on the medium and long terms, he indicated, adding that stocks have a good chance for investment.
The small- and medium-caps EGX70 index is targeting resistance at 880 points, after closing Thursday's trading session at 850 points, while it has support at 830 points, he continued.
Moreover, Sameh Gharib, head of technical research at Roots Stock Brokerage House, expects the EGX30 index to move towards 15,300 points.
Meanwhile, technical analyst Safaa Fares said that the EGX is stable and the EGX30 is still moving upwardly, adding that it has a short-term resistance at 15,400 points and an upside potential at 15,600 points.
The EGX index has support at 15,050 points and a downside potential at 14,850 points, Fares added.
Additionally, the EGX70 index has resistance at 860 points and an upside potential at 888 points, while it has support at 832 points and a downside potential at 821 points.
Arab and local investors book gains
The Egyptian Exchange closed on a down note last week, due to the excessive selling by Arab and local investors.
The EGX would suspend trades on Thursday 25 January in celebration of National Police Day and the 25 January revolution anniversary.
The main index EGX30 fell by 1.56% or 240.27 points, recording its highest weekly losses since last December, as it closed at the level of 15,170 points.
The benchmark index has a total traded volume of 827.9m shares, with a total turnover of EGP 2.9bn.
The market capital decreased by EGP 11bn, closing at EGP 850.7bn.
EGX70 went down 0.95% to 864.97, while the broader index lost 1% and ended the week at 2,016 points.
The equal-weighted index EGX50 also fell 1.24% to the level of 2,710 points.
Meanwhile, a recent research note issued by MubasherTrade Research expected the replacement of five stocks on the EGX30 index with another five stocks in early February.
The stocks of Abu Qir Fertilisers, Egypt Aluminium, Egypt Kuwait Holding, Ghabbour Auto (GB Auto), and Juhayna Food Industries are likely to be added to the EGX30 index, MubasherTrade highlighted.
Meanwhile, Arabian Cement, Arabian Food Industries Company (Domty), Cairo Oils & Soap, Egyptian Financial and Industrial Company, and Oriental Weavers are expected to be removed from the index, the research firm indicated.
MubasherTrade said that it is excluding the first scenario, on which Global Telecom Holding was fully acquired by VEON Holdings, the report continued.
The research firm had previously projected Global Telecom to be excluded from the benchmark in case investors choose to sell their shares in the offer.
Abu Qir is still expected to have the highest weight within the potential stocks to be added to EGX 30, according to the report.
The research firm noted that Abu Qir, Egypt Kuwait Holding, Juhayna, GB Auto, and Egypt Aluminium would have weights of 4.51%, 3.83%, 2.58%, 1.56%, and 0.86%, while Commercial International Bank is set to lose the highest weight as a result of its rebalance, the report concluded.

Clic here to read the story from its source.