With no market incentives and stable interest rates, the Egyptian Exchange (EGX) is expected to see quiet trading this week, until any positive news emerge or Banque du Caire's IPO implementation. Despite many major companies announcing strong financial results for 2019, such news were not enough to encourage investors to trade and increase trading volumes. Head of technical analysis at Pharos Holding Mohamed Osman believes the benchmark EGX30 is still hovering on its previous low at the support level of 13,550 points, thus the consistency of trading above that level paves the way for a possible rebound. In this regard, he says, monitoring the market's performance and the ability to hold the index above the last level is recommended. He advises those who are heavily investing in the market to make use of any rebound to reduce marginal exposures at better price levels until purchasing power recovers. Osman sees that in case of a confirmed penetration of 13,550 level, this will pave the way for further declines to the next support level at 13,200 points. As EGX30 keeps trading below the key resistance area between 13,900-14,100 points, Osman maintains his conservative vision until the market proves otherwise. Last week, EGX30 closed at 13,720.65 points recording a decline of 1%. EGX70 EWI posted 0.83% loss closing at 1,256.08 points, while S&P 500 Index declined 2.26%, and reached 1,918.32 points. EGX30 Capped also decreased 1.85% and closed at 15,664.86 points, and EGX100 down 1.4% to 1,364.67 points. Moreover, the total market capitalisation reached EGP 695.6bn, a decrease of 0.72% over the last week. The total trading was EGP 10.3bn, executed through 85,000 transactions on 1,171m securities last week, compared to a EGP 7.5bn trading value executed through 95,000 transactions on 707m securities in the week before last. Stocks accounted for 66.66% of the total trading, while bonds had 33.34%. Egyptians' transactions represented 58.3% of trading on listed stocks after excluding deals during the period. Foreigners accounted for 25.0%, while Arabs had 16.7%. Foreigners were net buyers at EGP 38.9m, while Arabs were net sellers at EGP 356.7m. Since the beginning of the year, Egyptians' transactions represented 63.8% of trading on listed stocks after excluding deals. Foreigners accounted for 25.4%, and Arabs 10.8%. Foreigners were net buyers at EGP 156.9m, while Arabs were net sellers at EGP 819.5m after excluding deals on listed stocks during the year.
