Abdel Hakim: The market trend is up despite the correction … and 12,000 points are a first target
Stock market traders expected that the market would complete profit-taking in the indices and sales of local institutions during today’s trading, aiming for a return to the rise after the end of the correction process to test levels of 11,600 and 12,000 points in the coming period.
The main index of the Egyptian Stock Exchange, EGX30, closed at the end of the Tuesday session, down by 1.15% to close at 11416 points, and the EGX70 EWI index fell by 1.45% to settle at 2370 points, driven by the sales of local institutions, which amounted to 218.5 million net pounds.
The EGX50 index of equal weights recorded a decline of 1.37%, stabilizing at 2366 points, and the “EGX30 capped” index declined by 1.20% at the level of 14051 points, and the broader EGX100 index declined by 1.34%, stabilizing at 3391 points.
Adel Abdel Fattah, Chairman of the Board of Directors of Themar Securities Brokerage Company, said that the main index of the stock exchange is still around levels between 11400 and 11600 points, which it tried to break through many times.
He pointed out that profit-taking causes the index to fall every time it tries to breach the 11600 level to the top.
Abdel Fattah found that CIB did not recover and was unable to breach the EGP 62.50 level, which is an important point, and bypassing it, the stock is heading in an upward direction.
It is likely that the index’s attempts will continue, and in the event of a drop below the level of 11400 points, it will return again between rising and falling until the emergence of substantial news that the index will rise to breach the level of 11600 points.
Abdel-Fattah pointed out that the seventieth index has performed well, and stocks exchange roles in the correction processes and the return to rise again.
He explained that the stock market is currently dominated by the performance of individuals, and advised prudence in dealing with buying on margin, especially speculative shares, and gradually moving towards the shares of the thirtieth index and moving towards investment instead of speculation at the present time.
The market recorded the trading value of 1.7 billion pounds, through the circulation of 759.6 million shares, through the implementation of 53.4 thousand buying and selling operations, after trading on the shares of 192 listed companies, 39 shares rose, and the prices of 129 securities declined, while the prices of 24 shares did not change. Another, to stabilize the market capitalization of the listed shares at 700.9 billion pounds.
Mohamed Abdel Hakim, Research Director of Faisal Securities Trading, said that the market in general is moving in an upward direction, and that the current decline is a corrective move, incidentally.
Abdel Hakim suggested that the main index will test the level of 11300 points as a first support level, and then resume the rise to the 12,000 points targeted in the short term.
He advised investors not to panic, and to take advantage of any corrective movements and declines to form buying positions.
The net dealings of Egyptians tended towards selling at a value of EGP 67.5 million, with a ratio of 86.8% of the buying and selling of shares, while net Arab and foreign transactions tended towards buying, recording EGP 22.04 million and EGP 45.2 million, respectively, with a 5.5% acquisition rate, and 7 .6% of trades.
Individuals executed 77.6% of transactions, heading towards buying all except for Arab individuals who recorded a net sale of LE 7.4 million, while institutions seized 22.3% of trades heading towards buying, with the exception of local institutions that recorded a net sale of LE 218.5 million. Arab and foreign institutions recorded a net sale. Sale worth 29.5 million pounds and 38.8 million pounds, respectively.
The article, Domestic Enterprise Sales hampering EGX30’s breach of 11450 points, was written in Al Borsa newspaper.