The Egyptian Exchange (EGX) is looking to test the potential opportunity for a rebound this week, after witnessing strong selling pressure over the last week. According to the current market conditions, market experts advise those investing in the market to close positions held on margin at any rebound and respect the stop loss levels for each stock. Mohamed Othman, Head of the Technical Analysis Department at Pharos Holding, said that the next support level lies at the 10,100 points level, which featured towards the lower end during April. The latter level is considered the last zone of defence, which has been in place during a one year period. Othman added that Pharos Holding will keep monitoring the market closely by approaching the aforementioned level to detect if any potential rebounding opportunity will emerge. On the other hand, breaking below the major support level would lead to strong selling pressure on the short and medium terms. The first resistance level on the short term lies at 10,550 points, followed by 10,670 points. Last week, the benchmark index EGX30 closed at 10,242.3 points, recording a decline of 4.56%. The EGX70 EWI posted 0.16% loss concluding the period at 2,225.59 points, while the S&P index declined by 3.23% and concluded the period at 1,685.42 points. Total market capitalisation reached EGP 652.5bn at end of the period, representing a decrease of 2.82% over the last week. The total value traded recorded EGP 18.0bn, while the total volume traded reached 3,537 million securities executed over 287,000 transactions last week. For the week before last, the total value traded recorded stood at EGP 17.0bn, while the total volume traded reached 2,917 million securities executed over 231,000 transactions. Stocks trading accounted for 54.43% of the total value traded of the main market, while the remaining 45.57% were captured by bonds over the last week. Egyptians represented 63.8% of the value traded in listed stocks after excluding deals during the period. Foreigners accounted for 25.3%, while Arabs captured 10.9%. Foreigners were net sellers, with a net of EGP 553.3m, and Arabs were net sellers, with a net of EGP 497.8m, after excluding deals in listed stocks. Since the beginning of the year, Egyptians have represented 81.3% of the value traded in listed stocks after excluding deals, whilst foreigners accounted for 11.6%, and Arabs captured 7.1%. Foreigners were net sellers by EGP 1,751.6m, and Arabs were net buyers with EGP 390.9m, after excluding deals in listed stocks during this year since started.
