The Egyptian Stock Market closed Tuesday on a slight increase. The market’s benchmark index EGX 30 closed in the green by 0.05per cent at 5.715 points while the broader EGX 100 moved up by 0.48 per cent, ending the day at 875.67 points.
EGX 330 resumed its sideways movement and did not succeed in breaking the 5750 points resistance level as expected by observers. Technical analysts predicted earlier that news regarding the deal of the EFG-Hermes and the Qatari QInvest deal would help bring a significant positive shift to the market.
EFG-Hermes has got the green light from the Egyptian Financial Supervisory Authority (EFSA) to conclude its deal with QInvest, which aims at creating a jointly-owned investment bank.
The EFSA gave its approval without reservation on the anticipated merger, as reported by EFG officials on Monday.
Osoul Brokerage’s technical analyst Ihab Al-Saeed, explains that what happened during Monday’s session is very positive, the day started by a sharp fall, with the index losing 30 points, then by midday the trend was reversed and the index began to climb, ending the day with a 3-point gain.
“What really affects the market is not the specific news about certain companies”, said Al-Saeed, “since the revolution, it is the political news that matters. In the first half of the week, we have witnessed a negative performance triggered by the weekend’s events, uncertainty is in the air and confusion is dominating the scene… Investors are afraid.”
Al-Saeed expects the market to resume its positive performance Wednesday despite price fluctuations; expected to remain in the range of the support level of 5500 points and the resistance level of 5800 points.The current sideways movement is expected to persist until this Friday when the agitation is expected to recommence.
Among the 173 listed companies who traded on Tuesday, 72 achieved gains, 72 suffered losses, while 29 remain unchanged. Among the top gainers were the Faisal Islamic Bank of Egypt (FAIT:EY), rising by 0.99 per cent, the Gharbia Islamic Housing Development (GIHD:EY) by 0.05 per cent and Medinet Nasr Housing (MNHD:EY) by 1.04 per cent. The most significant declining shares were Orascom Construction industries (OCIC:EY), dropping by 1.08 per cent while EFG-Hermes Holding Company (HRHO:EY) fell by 0.99 per cent.