Gharib: profits should be protected once the downtrend is confirmed
Hassan: The increase in the number of “Corona” infections is behind the market decline
The increase in the number of Prime Time Zone infected with the new Coronavirus led the collective decline of stock market indices, and traders expected the continued decline for the weekend session to reach the level of 11200 points as the closest support level.
The main index of the Egyptian Stock Exchange, EGX30, closed at the end of the Wednesday session, down by 1.05% to close at 11413 points, while the EGX70 EWI index fell by 1.67% to settle at 2376 points.
The EGX50 index of equal weights recorded a decline of 1.28%, stabilizing at 2381 points, the “EGX30 capped” index rose 0.99% at 14074 points, and the broader EGX100 index fell by 1.46%, stabilizing at the level of 3403 points.
Sameh Gharib, senior client trading manager at Arabiya Online Securities, said that the stock exchange closed negatively in Wednesday’s session, surpassing the support level down.
He pointed out that the stock market recently moved around the support level at 11450 points, and yesterday’s session started the emergence of selling pressures that led to the decline of the index.
Gharib pointed out that today’s session will be a confirmation of the downward trend, explaining that the next support level for the index is at 11250 points, and he added that the seventieth index also closed below the support level of 2380 points, indicating that the next support for the seventieth index is at 2345 points.
Gharib added that the “Commercial International” share broke the support level at 60.50 pounds, heading towards 58.50 pounds in the coming sessions. He advised investors to quickly protect profits once the downtrend is confirmed.
The market recorded trading values of 1.4 billion pounds, through the circulation of one billion shares, by executing 50.4 thousand buying and selling operations, after trading on the shares of 191 listed companies, of which 33 shares rose, and the prices of 138 securities declined, while the prices of 20 shares did not change, To stabilize the market capitalization of the listed shares at the level of 700.4 billion pounds.
Mohamed Hassan, a financial market analyst, expected the decline in the end of the week’s session due to the increase in the number of Prime Time Zone infected with the “Corona” virus, to become the closest support level at 11200 points, pointing out that this decline will be a corrective move to return to the rebound.
Hassan added that the non-banking financial services sector is one of the most promising sectors in the stock market during the coming period due to the recent acquisitions activity.
He advised long-term investors to buy on dips and use them to form buying positions, and the short-term investor is waiting for a bounce to buy back.
The net dealings of foreigners alone tended towards buying, with a value of EGP 13.9 million, with a ratio of 6.88% of the buying and selling of shares, while the net dealings of Egyptians and Arabs tended towards selling, recording EGP 8 million and EGP 5.9 million, respectively, with a ratio of 88.48% and 4.64% acquisition Of trades.
Individuals carried out 82.25% of transactions, heading towards all sales, led by Egyptian individuals who recorded a net sale of 7.59 million pounds, while institutions seized 17.74% of trades heading towards buying, with the exception of Egyptian institutions that recorded a net sale of 424 thousand pounds, while Arab institutions registered And foreign net sales of 6.3 million pounds and 14.4 million pounds, respectively.
The article, the increase in the number of “Corona” infections, is driving the collective decline of stock market indices. It was written in the Al-Borsa newspaper.