The good: EGX70 saturation creates opportunities for a short-term correction
Houssam: Electronic payments stocks and real estate still have investment opportunities
Traders in the Egyptian Stock Exchange expected that the performance of the main index of the market will gradually improve in the coming period, supported by the beginning of the business results season, as well as news of new offers that the market will witness during the current quarter of the year.
CI Capital’s Education Management Services Company plans to offer 49% of its shares on the Egyptian Stock Exchange during the first quarter of this year.
The main index of the Egyptian Stock Exchange, EGX30, closed up 0.1% at the close of the session on Tuesday, at 11534 points, and the EGX70 EWI index rose 0.6% at 2416 points.
Hesham Hassan, the investment manager at HD Securities, suggested that the EGX70 EWI would target levels of 2500 points, then 2560 points, explaining that the saturation signals that appeared on it allowed for short-term correction periods.
Hassan explained that the main index of the market is gradually improving with the start of the announcement of the results of the companies’ business last year, with the return of foreign investors to the market in a strong way, awaiting the new offerings.
He stressed that the signs of a return to normal life soon appeared with the high rates of recovery from the epidemic and the positive impact of various vaccines, indicating the need for vigilance and not raising the risk ratios and the need to seize opportunities.
Yesterday, the EGX 50 index rose 0.6%, to settle at 2412 points, while the EGX 30 Capped index fell by 0.03% to reach 14215 points, and the EGX100 EWI index closed 0.6% higher at 3453 points.
The market recorded trading values of 1.4 billion pounds, through the circulation of 414.5 million shares, by executing 47.2 thousand buying and selling transactions, after trading in the shares of 191 listed companies, of which 91 shares rose, and the prices of 70 securities decreased, while the prices of 30 shares did not change Others, to stabilize the market capitalization of the listed shares at the level of 706.6 billion pounds.
Mahmoud Hussam, Director of Local Institutions Trading at Mubasher Securities, expected the index to move sideways in the short term between levels of 11400 points – 11650 points, with the difficulty of penetrating the resistance areas currently due to the lack of incentives.
He explained that the most promising sectors are the non-banking financial sector, real estate and health care, in addition to the shares of electronic payment companies that have witnessed some profit-taking operations in the past period.
The net dealings of the Egyptians alone tended towards selling at a value of EGP 42 million, with a ratio of 89.1% of the buying and selling of shares, while the net transactions of Arabs and foreigners tended towards buying, recording EGP 16.4 million and EGP 25.9 million, respectively, with an acquisition ratio of 5.2% and 5 .7% of trades.
Individuals executed 80.4% of transactions, heading towards selling, with the exception of Egyptian individuals who recorded a net sale of 14.9 million pounds, while institutions seized 19.6% of trades heading towards selling, with the exception of foreign institutions that recorded net purchases of 24.3 million pounds, while local and Arab institutions recorded a net Sale worth EGP 27.2 million and EGP 5.8 million, respectively.
The article beginning of the business results season pushing EGX30’s performance to gradually improve was written in Al Borsa newspaper.