Government IPO programme boosts Egypt’s stock market 

Government IPO programme helped Egypt’s stock market end last week’s trading in the green zone, as optimism prevailed among stock market dealers.

The benchmark index EGX30 closed at 17,342 points at the end of last week’s trading, recording an increase of 1.4%, while EGX70 EWI declined by 1.33% to 3,428 points.

EGX30 capped rose by about 1.08% to 21,074 points, and the EGX100 broader index declined by 1.2% to settle at 5084 points.

Moataz Ashmawy, Managing Director of Arabeya Online, said that EGX30 broke the resistance level of 16,800 points at the beginning of the week, and the emergence of buying power pushed the index up to 17,300 points.

He explained that the rest of the leading stocks followed the CIB stock, and headed for the rise, which contributed to the rise of the main index, with a decrease in trading rates compared to previous months.

He explained that the decline in trading rates came due to liquidity withdrawal operations from Al-Warsa, which reached EGP 3bn, in preparation for Beltone’s subscription process.   

Ashmawy expected the main index EGX30 to rise to levels of 17800 points during this week’s trading, and a positive performance for stock market indicators due to positive and stimulating news for the current economy.

The market recorded a trading value of EGP 15bn, and circulation of 3.8 billion shares through 115,600 operations last week, compared to a trading value of EGP 6bn, and circulation of 2.5 billion shares through 209,000 operations two week ago.

Egypt’s stock market recovered from a sharp drop last week, as positive news of government exit deals boosted investor sentiment, said Mohamed Hassan, Investment Funds Director at Odin Investments.

Hassan expected EGX30 to continue its positive performance in the coming weeks, and reach levels of 17,600 points and 17800 points, supported by the stability of the economic situation.

He said the index EGX70EWI, which tracks small and mid-cap stocks, closed at a support level of 3,400 points, and began to rebound. He expected it to keep rising in the coming weeks, with the return of liquidity flow after positive economic news.

Hassan advised investors to engage in quick trading between support and resistance levels during the current stage, and avoid buying on margin, until clarity of vision in the markets. He said he expected the indicators to move sideways in the medium and short term.

Foreigners recorded a net sale of EGP 251m, with a share of 6.6% of sales and purchases operations on stocks, while Arabs sold a net EGP 21.2m, with a share of 7.1%, excluding deals.

Stocks accounted for 82.55% of the transactions of the Egyptian Exchange during the past week, while bond trading represented about 17.45% of the transactions.