Expectations of the Egyptian Exchange suggested it would head towards a positive week similar to last week, supported by some positive news, most notably STC’s possible acquisition Vodafone Egypt by STC that pushed the shares of Telecom Egypt to rise, the possible merger of Cleopatra Hospitals with Alameda Healthcare, and also reports about offering the Armed Forces companies. This increased the appetite of investors to buy.
Mohamed El-Aasar, head of the technical analysis department of Aman Securities, expected the benchmark index EGX30 to continue crawling upward towards 13,900-14,350 points this week, supported by the expected positive performance of several stocks. This is led by Porto Group which is predicted to increase to EGP 0.62, Ezz Steel to reach about EGP 9.60, Sidi Kerir Petrochemicals to about EGP 10, Egyptian Chemical Industries – Kima to EGP 5,80, and the Commercial International Bank to EGP 89 per share.
Therefore, Al-Aasar advises short-term investors to take advantage of trading opportunities in these stocks this week and purchase reservedly in light of limited volumes of trading.
Last week, EGX30 closed at 14,105.86 points, recording an increase of 1.34%. S&P 500 index rose 0.45% and closed at 1,985.55 points.
Moreover, EGX30’s cap rose by 0.94% and closed at 16,249.97 points, and the broader EGX100 rose by 0.42% and closed at 1,400.9 points.
The total trading on the EGX reached EGP 14.1bn last week executed through 102,000 transactions on 835m securities, compared to total trading of EGP 9.7bn executed through 96,000 transactions on 796m securities in the week before last.
Shares accounted for 24.25% of the total trading value of the main market, while the remaining 75.75% was captured by bonds.
Egyptians seized 61.0% of the value traded in listed stocks after excluding deals. Foreigners accounted for 28.7%, while Arabs had 10.3%.
Foreigners were net buyers at EGP 300.7m, while Arabs were net sellers at EGP 142.0m after excluding deals in listed stocks.
Since the beginning of the year, Egyptians represented 64.6% of the value traded in listed stocks after excluding deals, foreigners accounted for 25.5%, while Arabs had 9.9%.
Foreigners were net buyers at EGP 110.2m, while Arabs were net sellers at EGP 341.3m after excluding deals in listed stocks.