Dubai Expo 2020 recommends postponing a year amid virus    US expected to renew sanctions waivers allowing Iran nonproliferation work: Sources    How will we vote? Outbreak revives debate mail-in ballots    Poland vote could be postponed if safety not guaranteed: President    What you need to know about the Central Bank of Egypt's new cash deposits and daily withdrawal limits    Saudi, UAE businesses battle cash crunch despite anti-coronavirus stimulus    Tokyo Olympics rescheduled for July 23-Aug 2021: Organizing committee    Iran's coronavirus death toll reaches 2,757: Health official        Serie A hits back at Italy sports minister Spadafora over 'bubble' remark    Drop in China's new coronavirus cases; none in Wuhan for sixth day    Egypt's FRA launches policies for micro-finance activity amid coronavirus    Mourinho to take Tottenham training via video amid coronavirus lockdown    Egypt's defender Elmohamady proud of 10-year milestone in England    Facebook users add ‘Stay At Home' frame to profile photos    How coronavirus affects real estate market in Santa Clarita Valley    UK epidemic is slowing and antibody test could be ready in days, top epidemiologist says    Twitter removes 2 Bolsonaro tweets questioning coronavirus quarantine    Egypt to extend closing mosques over coronavirus fears – minister    El-Tayeb urges Egyptians to stick to coronavirus preventative measures    Egypt, MENA growth forecast at 2.7%, -0.3% respectively: IIF    Prosecution warns of EGP 300k fine or 2-year jail for spreading fake coronavirus news    Al-Sisi discusses joint coronavirus efforts with Abu Dhabi Crown Prince    Saudi Arabia intercepts missiles over Riyadh    CBE temporarily regulates cash deposits, withdrawals    Lagging COVID-19 response to shield frail economy: Rouhani    Apple works with US House to release coronavirus app, website    California's houisng market unclear after new restrictions amid coronavirus    Farwell to Egyptian comedian George Sidhom    Weekend's virtual concerts, plays, and festivals people can stream at home    Egyptian comedy icon George Sidhom dies at 81    Shooting Egypt's Ramadan television series in the time of coronavirus    Egyptian court sentences five to death for vandalising gas pipeline, killing nine    Amid coronavirus outbreak, Egyptian Premier League cancellation seems inevitable    Brazilian football stadiums transformed into hospitals to treat coronavirus patients    Stay At Home: Ministry of Culture to publish free books online for public browsing    ‘We are here to boost the morale': Ahmed Zeidan, Egypt's ROOM Art Space& Café    IOC postpones Tokyo Olympics due to coronavirus pandemic    Playing for time    Water effects of the dam    What to watch to kill time in quarantine?    Japan PM Abe agree on delaying the Tokyo Olympics for one year    Ethiopia has not sent Egypt latest designs for GERD: Minister of Irrigation    Al-Sisi appreciates Kenya's support to Egypt's stance on GERD    Nigerien President hails Egypt's diplomatic attempts to reach agreement over GERD    Tom Hanks and wife Rita Wilson announced both test positive for coronavirus    Cairo court acquits Mubarak's sons of stock market manipulation    Egypt's President Sisi pardons some prisoners on 25 Jan. Revolution anniversary    







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





EGX relies on Fawry IPO to recover, break out of sideways range
Most of this liquidity will come from Fawry IPO which is expected to energise the Egyptian Exchange (EGX), increasing the chances of profit through the expected rise in stock prices.
Published in Daily News Egypt on 28 - 07 - 2019

While the capital market is looking for positive stimuli to drive stock prices and trading volumes to recover, Fawry IPO will play out, following the activation of VEON acquisition of Global Telecom, which will provide at least EGP 10bn of liquidity in the market.
Most of this liquidity will come from Fawry IPO which is expected to energise the Egyptian Exchange (EGX), increasing the chances of profit through the expected rise in stock prices.
Ehab Saeed, a member of the EGX board and head of Technical Analysis at Osoul for Security Brokerage, said that offering Fawry on the EGX will be a positive incentive to the market's upward movement during the coming period and will attract new liquidity to the market, particularly with the implementation of VEON's acquisition of Global Telecom.
It is expected that Fawry IPO will support the EGX performance in the coming months, along with the package of government IPOs expected to follow, which will beat investors' appetite for government debt instruments, particularly foreigners, given that Deutsche Bank stated two days ago that there is an upcoming reduction in interest rates worldwide, with a shift toward cautious approach from the European Central Bank and the Federal Reserve System.
The German bank sees central banks in emerging markets as following the cautious approach of European central banks.
Most of the shares closed at their lowest levels in the last session, reflecting the trend of selling, which is expected to shift after the announcement of Fawry prospect for the EGX to be tested this week as traders interact with Fawry IPO, pushing the index to break out of sideways and move up.
Mohamed Othman, head of technical analysis at Pharos Holding, said the benchmark EGX30 in its fourth attempt was unable to get through the secondary resistance level at 13,760 points, which represents the upper limit of the cross-movement that has been in the scene over the past seven sessions, adding that we need to see a clear break of the resistance level with the recording of relatively high volumes and improved market health indicators, which in this case may set the stage for a temporary rebound toward levels of 13,900 – 14,000 points.
He pointed out that according to the current market performance and weak purchasing forces, we keep our conservative vision until the market proves the opposite.
The possibility of completing the rebound attempts remains standing with the execution of Fawry IPO as long as the trading session is at the highest support level at 13,370 points.
The EGX30 index closed at 13,510.06 points, recording a decline of 1.17%. EGX70 index posted a 0.19% gain concluding the period at 532.96 points, while the S&P index declined by 0.97% and concluded the period at 2,103.37 points.
The EGX30 index capped declined by 1.49% and concluded at 16,545.73 points, while the EGX100 index declined by 0.02% and concluded the period at 1,375.77 points.
The total value traded recorded EGP 6.4bn, while the total volume traded reached 489m securities executed over 55,000 transactions last week.
For the week before last, the total value traded recorded EGP 10.6bn, while the total volume traded reached 719m securities executed over 75,000 transactions.
Stocks trading accounted for 27.45% of the total value traded of the main market, while the remaining 72.55% were captured by bonds over the week.
Egyptians represented 64.0% of the value traded in listed stocks after excluding deals during the period. Foreigners accounted for 27.7%, while Arabs captured 8.4%. Foreigners were net sellers, with a net of EGP 71.8m, and Arabs were net sellers, with a net of EGP 97.9m, after excluding deals in listed stocks. Since the beginning of the year, Egyptians represented 66.7% of the value traded in listed stocks after excluding deals, foreigners accounted for 24.3%, while Arabs captured 9.0%. Foreigners were net sellers by EGP 1,436.9m, and Arabs were net sellers by EGP 781.1m, after excluding deals in listed stocks during this year since it started.


Clic here to read the story from its source.