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EGX further declines to close at 10,054 points, blue-chips see heavy sell-off If market decline continues, EGX30 will be vulnerable for strong selling pressure where next support level will stand at 9,800 points
The Egyptian Exchange (EGX) continued to decline last week, closing at 10,054.81 points, recording a decrease of 1.83%. Meanwhile, blue-chips witnessed a heavy sell-off, mainly Elsewedy Electric, Talaat Mostafa Group, and the Commercial International Bank. Mohamed Othman, Head of the Technical Analysis Department at Pharos Holding, said that buying power has so far been absent. In case of the failure to maintain above the 10,100 points level, the benchmark index EGX30 would be vulnerable for strong selling pressure where the next support level will stand at 9,800 points. On the other hand, the first resistance level lies at 10,380 points. "According to the current market conditions and the absence of buying power, we keep our conservative attitude and advice for those who are investing in the market to respect stop loss levels for each stock separately," Othman added. The EGX70 EWI posted a 4.88% gain concluding the period at 2,334.24 points, while the S&P index declined by 1.59% to conclude the period at 1,661.33 points. The EGX30 Capped declined by 1.73%, and concluded at 12,474.68 points. Meanwhile, the EGX100 EWI rose by 3.23% and concluded the period at 3,251.86 points. Total market capitalisation reached EGP 648.6bn at the end of the period, representing a decrease of 0.55% over the last week. The total value traded recorded EGP 14.3bn, while the total volume traded reached 3,665 million securities executed over 288,000 transactions this week. For the week before last, the total value traded recorded EGP 18.0bn, while the total volume traded reached 3,537m securities executed over 287,000 transactions. Stocks trading accounted for 59.07% of the total value traded of the main market, while the remaining 40.93% were captured by bonds over the last week. Egyptians represented 86.3% of the value traded in listed stocks after excluding deals during the period. Foreigners accounted for 7.9%, while Arabs captured 5.8%. Foreigners were net sellers with a net of EGP 201.8m, whilst Arabs were net buyers, with a net of EGP 59.3m, after excluding deals in listed stocks. Since the beginning of the year Egyptians represented 81.6% of the value traded in listed stocks after excluding deals. Foreigners accounted for 11.4%, while Arabs captured 7.0%. Foreigners were net sellers by EGP 1,953.4m, whilst Arabs were net buyers by EGP 450.2m, after excluding deals in listed stocks during this year.
