The stock market reformulates its targets and expectations of a corrective rebound


Abdul Qader: Positive market movement at the beginning of the last quarter of this year

The Egyptian Stock Exchange indices completed the decline journey that it started since the opening of the tax file and the frequent talk about the date of its application.

Expectations came to target the main index levels of 10600-10800 points during the upcoming sessions, with an expected improvement and positive performance starting from the fourth quarter of this year.
The main index of the Egyptian Stock Exchange EGX30 closed down by 0.47% at the end of yesterday’s session, stable at the level of 10446 points, and the EGX70 EWI index fell by 0.52% to settle at the level of 2709 points.

The EGX50 index of equal weights decreased by 0.51%, stable at the level of 2294 points, and the “EGX30 capped” index decreased by 0.45%, stable at the level of 12,761 points, and the broader EWI EGX100 index declined by 0.54%, stable at the level of 3640 points.

Amer Abdel Qader, head of the brokerage sector for development at the Pioneers Securities Trading Company, said that the tax file has confused the Egyptian Stock Exchange during the recent period and raised the concerns of dealers.
He explained that the market witnessed a simple cohesion with the support of the global markets’ rebound, and the tendency of foreign and Arab investors to buy in the Egyptian market.

Abdel Qader pointed out that the market reached low price levels for most stocks in conjunction with many reasons that proliferated on the Egyptian market, unlike the international markets.
Abdul Qader suggested that the market would consolidate around the level of 10200 points during the sessions of the rest of the week, expecting a positive movement for the market starting from the fourth quarter of this year.

He explained that the main index of the stock exchange targets levels of 10600-10700 points during the next week’s sessions, and advised investors to stay away from margin buying and focus on the profitability of shares, as the time of the market’s decline is an opportunity to build purchasing positions.

The market recorded trading values ​​of 1.24 billion pounds, with 449.6 million shares being traded, and 39.84 thousand buying and selling operations were carried out, after 191 listed companies were traded, 46 of which rose, and the prices of 89 securities declined, while the prices of 56 other shares did not change. The market capitalization of listed shares stabilized at EGP 698.23 billion, losing about EGP 2.87 billion during the session.

“Abdel-Fattah” advises sticking to companies with strong financial performance

Adel Abdel-Fattah, Chairman of the Board of Directors of Thimar Securities Brokerage Company, said that the market continues to perform unbalanced, but it is suitable for the state of anxiety and hesitation among investors.
He suggested that the market is likely to rebound after the repeated decline during the coming period, affected by many reasons, the most important of which is the tax file that worries dealers.

He pointed out that the stock market targets the levels of 10600-10800 points during the upcoming sessions, and advised investors to stick to companies with strong financial performance.

The net transactions of Egyptians alone tended to sell at a value of 63.8 million pounds, with 86.65% of buying and selling transactions on shares, while the net transactions of Arabs and foreigners tended to buy, recording 28.5 million pounds and 35.3 million pounds, respectively, with an acquisition rate of 4.09%, and 9.25% of the transactions.

Individuals carried out 60.2% of the transactions, heading towards buying, led by Egyptian individuals, who recorded a net purchase of 25.9 million pounds, and Arab and foreign individuals recorded a net purchase of 20.6 million pounds and 339.5 thousand pounds, respectively.

While institutions captured 39.8% of the trading, heading towards buying, with the exception of Egyptian institutions, which recorded a net sale of 89.8 million pounds, while Arab and foreign institutions recorded a net purchase of 7.96 million pounds and 34.9 million pounds, respectively.

The article was written in the stock exchange newspaper.