COVID-19 fears trigger EGX fall, driven by foreign sales

EGX30 capped declined by 5.8% and concluded at 14,756.81 points, while EGX100 declined by 3.93% and concluded the period at 1,311.08 points.

In spite of good financial results achieved by big companies listed on the Egyptian Exchange, they failed to save the stock market indicators from losses which occurred largely because of Arab and foreign rushing sales driven by fears of COVID-19 outbreak and its negative effects on the economy.
Mohammed Osman, head of technical analysis department at Pharos Holding, sees that the major support area lies between the levels of 13,200 – 13,000 points on EGX30 Index, could stand in face of the decline even temporarily. In case of a successful breaching above Wednesday's high at the level of 1,207 points this would pave the way for a potential rebound to the resistance level 1,240 points, which coincides with 13,550 on EGX30. In this regard, those who are heavily invested in the market are advised to make use of any rebound to reduce marginal exposures at relatively better levels.
Last week, EGX30 closed at 13,008.94 points, recording a decline of 5.19%. EGX70 EWI posted 3.73% loss concluding the period at 1,209.27 points, while S&P 500 index declined by 5.45% and concluded the period at 1,818.38 points.
EGX30 capped declined by 5.8% and concluded at 14,756.81 points, while EGX100 declined by 3.93% and concluded the period at 1,311.08 points.
Total market capitalisation reached EGP 667.0bn at the end of last week, representing a decrease of 4.12% over the period.
The total value traded recorded EGP 7.4bn, while the total volume traded reached 1.448bn securities executed over 110,000 transactions last week.
For the week before, the total value traded recorded EGP 10.3bn, while the total volume traded reached 1.171bn securities executed over 85,000 transactions. Stocks trading accounted for 57.31% of the total value traded of the main market, while the remaining 42.69% were captured by bonds over the week.
Egyptians represented 64.4% of the value traded in listed stocks after excluding deals during the period. Foreigners accounted for 26.2%, while Arabs captured 9.4%. Foreigners were net sellers, with a net of EGP 162.6m, and Arabs were net buyers, with a net of EGP 29.9m, after excluding deals in listed stocks.
Meanwhile, the monthly indicators recorded as follow, EGX30 closed at 13,008.94 points, recording a decline of 6.54%. EGX70 EWI posted 5.34% loss concluding the period at 1,209.27 points, while S&P 500 declined by 7.96% and concluded the period at 1,818.38 points.
EGX30 capped declined by 8.34% and concluded at 14,756.81 points, while EGX100 declined by 6.02% and concluded the period at 1,311.08 points.
Total market capitalisation in February reached EGP 667.0bn, representing a decrease of 5.81% over the period.
The total value traded recorded EGP 39.2bn, while the total volume traded reached 4.159bn securities executed over 391,000 transactions last month.
For December, the total value traded recorded EGP 47.3bn, while the total volume traded reached 3.395bn securities executed over 377,000 transactions. Stocks trading accounted for 43.64% of the total value traded of the main market, while the remaining 56.36% were captured by bonds over the month.
Egyptians represented 62.2% of the value traded in listed stocks after excluding deals during the period. Foreigners accounted for 26.4%, while Arabs captured 11.4%. Foreigners were net buyers, with a net of EGP 184.8m, and Arabs were net sellers, with a net of EGP 590.2m, after excluding deals in listed stocks.
Since the beginning of the year, Egyptians represented 63.9% of the value traded in listed stocks after excluding deals, foreigners 25.5%, while Arabs captured 10.6%. Foreigners were net sellers by EGP 5.7m, and Arabs were net sellers by EGP 789.5m, after excluding deals in listed stocks during this year since started.