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Egypt shares extend slide for 2nd week, await fresh stimulus - Daily News Egypt

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Egypt shares extend slide for 2nd week, await fresh stimulus

Foreign investors dump local stocks ahead of Eid Al-Adha vacation


Egypt shares extended their slide for the second week in a row, as foreign and local investors continued a sell-off streak ahead of the Eid Al-Adha vacation, which is scheduled to kick off at the end of this week.

The market was pressured by the selling activity of both foreign and Egyptian investors alike, despite the Central Bank of Egypt’s (CBE) decision to maintain interest rates.

The benchmark index EGX30 continued its downwards trend and declined by 1.47%, losing 193.04 points, and closed at the level of 12,926.49 points.

EGX70 lost 0.85% and closed at 691.14 points, while the broader index EGX100 went down by 1.16% to the level of 1,555.13 points.

Meanwhile, the equal-weighted index EGX50 fell 2.88% to 1,992.98 points, with turnovers totaling EGP 1.9 billion.

Traded volumes for the stocks of the main index amounted to 652.3 million shares this week, with a total turnover of EGP 1.6 billion.

Commercial International Bank (CIB), the stock with the heaviest weight in the main index, rose by 0.28% to the level of EGP 81.33, with volumes of 2.69 million shares, and a total traded value of EGP 219.3 million.

The market capital lost EGP 8.5 billion and ended the week at the level of EGP 689.008 billion, after closing last week at EGP 697.58 billion.

Foreign and Egyptian investors were inclined to sell, netting EGP 30.9 million and EGP 104.48 million, respectively, while Arab investors were net buyers at EGP 135.38 million.

“The EGX30 index continued to move within a flat range in July, affected by leaning appetite towards the local debt market in order to take advantage of the short-term interest rate hikes. July’s EGX30 sub-index remained around its average level post-flotation,” Pharos Research said in a note.

Pharos added that even when the market is in the green, weakness is apparent in the momentum that turns red by the end of the session.

“We assume lack of steam would prevail until September 5, when the holiday season ends,” it added.

“Those who are invested in the market are not recommended to dump their stocks at the current level. Instead, our tactic of choice is to hold, with the view to reduce exposure should the Hermes Last Index retest what we believe to be the nearest important resistance on the daily chart at around 1,217, (13,250 – 13,300 on the EGX30 Index),” the note added.

“We reiterate that while we are still biased toward the scenario of a market rebound off the current level, such a rebound won’t necessarily result in a recovery on the short-term. In other words, those who are invested in the market are advised to make use of the potential market rebound.”

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https://wwww.dailynewssegypt.com/2017/08/27/egypt-shares-extend-slide-2nd-week-await-fresh-stimulus/
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