Cairo – Mubasher: Egyptian Exchange (EGX) indices closed August in the red zone following domestic selling and a decline in liquidity.
The EGX30 index slipped 0.03% or 3.61 points reaching 13,415.77 points. Trading volume on the index reached 3.9 billion shares, with a liquidity of EGP 9.7 billion.
EGX market capitalisation lost EGP 616 million to reach EGP 705 billion by the end of August.
The EGX30 index saw weak performance during August as the main indices were weighed down by increased selling by Egyptian institutions, technical analyst Safaa Fares told Mubasher.
In the last three trading sessions in August the EGX30 grew, closing at 13,415.77 points on the back of Egyptian and foreign investors purchasing leading stocks, Fares added, forecasting that the benchmark index will continue its late-month rising trend in September, backed by Egyptian and foreign institutions' purchases.
The EGX30 has a strong resistance level at 13,600 points, and aims to exceed 14,000 points, Fares told Mubasher, noting that support is currently at 13,190 points.
Meanwhile, the EGX70 decreased 1% or 6.98 points to reach 692,55 points during August, with a traded volume of 675.3 million shares, generating EGP 3.7 billion.
Commenting on the EGX70's performance, the analyst noted that the index will see resistance at 704 points and aims to exceed 730 points, while support is at 680 points.
The EGX100 declined 1.47% reaching 1,564.95 points, after 4.59 billion shares were exchanged at a turnover of EGP 13.46 billion. Similarly, the equal-weighted EGX50 index went down 1.47% to 2,045.61 points, with a traded volume of 4.18 billion shares, at a value of EGP 11.65 billion.
Selling by investors and institutions amounted to EGP 290 million each during August.
Egyptian investors acquired 71.8% of trading activities during the month of August, while foreign and Arab investors acquired 20.3%, and 7.9%, respectively.
Egyptian investors were net sellers with EGP 712.7 million, whereas foreign and Arab Investors were net buyers with EGP 617.1 million, and EGP 116.7 million, respectively.
The EGX30 benchmark index passed resistance at 13,400 points after its weak performance earlier the same month when it slid to its lowest level since May at around 12,900 points, Saeed Al-Feki, a branch manager at Osool ESB Securities Brokerage said.
The analyst attributed the weak performance to profit-taking by foreign institutions on blue-chip stocks, as well as the implementation of the stamp tax which negatively impacted trading volumes and values.
Maintaining a position above 13,400 points, the Egyptian bourse’s benchmark index is likely to target the level of 13,700 points in the coming period, while traded value and volume are also forecasted to increase, he concluded.
