The Egyptian Exchange (EGX) will be limited to two sessions only on Sunday and Monday, as Eid al-Fitr holiday will start on Tuesday, which suggests a stagnation of transactions would be the most likely scenario. The EGX may continue its weak performance witnessed at the end of the previous session to continue its downturn this week, especially as the US-China trade conflict still cast its shadow over the global markets during the past week, which led to the decline of US stock indexes significantly at the end of Friday trading. The Dow Jones industrial Average fell by more than 350 points, while the Wall Street saw its first red month this year. The strong losses come on the US stock market following US President Donald Trump's decision to apply progressive tariffs against all goods imported by the United States from Mexico against the backdrop of illegal migration. At the end of May, EGX30 index closed at 13,771.31 points last week, recording a decline of 7.7%. EGX70 index posted 7.85% loss concluding at 597.4 points, while S&P 500 index declined by 7.66% and concluded at 2,128.2 points. EGX30 index capped declined by 8.25% and concluded at 17,002.91 points, while EGX100 index declined by 8.17% and concluded at 1,521.84 points. Mohamed Othman, senior technical analyst at Pharos Holding for Financial Investments, said that trading during the next two sessions will be dominated by weak performance, especially as EGX30 capped reached the resistance level last session at 17.520 points (equivalent to the level of 14.165 points on the EGX30 index) and the inability of the purchasing power to maintain the rise and the emergence of selling pressure and then the index fell to about 17.346 points. He pointed out that during the last seven sessions, the market's rebound was accompanied with low trading volumes, which confirm that the current rise is a bullish trend on the short term. Othman advised investors to sell at the rebound and fortify their positions until a clear breach of the resistance of EGX30 capped at 17,520 points, adding that as long as the trading movement occurs below this last level, the scenario of the emergence of selling pressures is the closest now. He pointed out that the first support level currently awaited by the market is at 17,170 points (13,770 points on EGX30). Total market capitalisation reached EGP 745bn at end of the month, representing a decrease of 7.87%. The total value traded recorded EGP 13.5bn, while the total volume traded reached 2,065 million securities executed over 300,000 transactions last month. For April, the total value traded recorded EGP 17.1bn, while the total volume traded reached 2,734 million securities executed over 310,000 transactions. Stocks trading accounted for 79.01% of the total value traded of the main market, while the remaining 20.99% were captured by bonds over the month. Egyptians represented 59.9% of the value traded in listed stocks after excluding deals during the period. Foreigners accounted for 32.1%, while Arabs captured 8.0%. Foreigners were net buyers, with a net of EGP 120.7m, and Arabs were net sellers, with a net of EGP 10.9m, after excluding deals in listed stocks. Egyptians represented 59.9% of the value traded in listed stocks after excluding deals during the period. Foreigners accounted for 32.1%, while Arabs captured 8.0%. Foreigners were net buyers, with a net of EGP 120.7m, and Arabs were net sellers, with a net of EGP 10.9m, after excluding deals in listed stocks. On the level of weekly performance of the market Total market capitalization reached EGP 745bn at end of period, representing a decrease of 0.88% over the period. The total value traded recorded EGP 3.9bn, while the total volume traded reached 668m securities executed over 84,000 transactions the last week. For the week before last, the total value traded recorded EGP 3.1bn, while the total volume traded reached 390m securities executed over 69,000 transactions. Stocks trading accounted for 76.26% of the total value traded of the main market, while the remaining 23.74% were captured by bonds over the week. The total value traded recorded EGP 3.9bn, while the total volume traded reached 668m securities executed over 84,000 transactions last week. For the week before last, the total value traded recorded EGP 3.1bn, while the total volume traded reached 390m securities executed over 69,000 transactions. Stocks trading accounted for 76.26% of the total value traded of the main market, while the remaining 23.74% were captured by bonds over the week.
