Financial market experts and expectations that EGX30 will target the level of 9450 points this week

Financial market experts see the rise of the main index for about 7 consecutive sessions as a corrective move after the downward wave it was exposed to before the Eid al-Adha holiday. They advised to stay away from marginal purchases during the current period .

They said that the main index is targeting the level of 9450 points this week, and if selling forces appear, it will be temporary, as it has a strong support area near 9000-8900 points.

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Raymond Nabil, a financial market expert and member of the Egyptian Association of Technical Analysts, expected the index to face some temporary selling forces during the middle of next week, which would not last long, especially as the index ‘ a strong support area near 9000 points and 8900 points.

Keep in mind that buying forces are likely to re-emerge near the aforementioned support area; To go back to the target (9600 – 9700) points in the short term.

A financial market expert and member of the Egyptian Association of Technical Analysts said that the main resistance area for the next week remains at 9400 points, indicating that the index is targeting levels near (9900-10000) points during the month of August.

He added that the indices rose well during the past week as the main index closed at a high of around 177 points in the Thursday session, with a total gain during the week of 517 points, which is close to 9,289 points closed, approaching the important resistance level. close to 9300 points.

He continued that the index was able to make an upward journey that lasted for 7 consecutive sessions in an upward rebound from the previous violent decline, which is considered the longest consecutive period of increase since March after the decision to cut the interest rate to increase and the exchange rate.

Nabil said the property sector could continue to outperform; However, in order to greatly increase the injection of liquidity in the stocks listed in it in the recent period, it is expected that there will be a shift in positions in the next wave of rise to most of the sectors listed on the stock exchange is, to move.

It is worth noting that the main index reached its lowest level since the second quarter of 2020 in the Corona crisis in the recent decline, while the seventy index managed to maintain the monthly low for the previous month of April, as it the level of 1674 points, and during the current July it broke that level a false break to reach 1655 points, but it quickly recovered to close above 1674 points in three trading sessions to confirm that it was a false break and the previous week closed near 1800 points with a total weekly rise close to 102 points to keep its target near 1840 points in the short term and near 1890 points in the medium term.

Raymond believes that this level is the main resistance for the index during the month of August, which if the index can break it during the third quarter, there are chances that the correction for the index will end at least in the short term, to turn again for the bullish move to a target of 2000 points and then 2100 points.

He continued: “But this is related to the extent of the index’s ability to penetrate 1890 points in the coming period, even if it is expected to happen by the end of the third quarter, and the bottom point that occurred in the last period achieved, remains the most important support for the index during the third quarter.”

He also expected that the listed companies would continue to make purchase decisions for treasury shares to maintain the market values ​​of the companies in the capital market, with the continued emergence of acquisition offers in various sectors in the recent period, whether from Arab or Egyptian companies , and the apex of these sectors in the recent period is the real estate sector and the food sector.

A financial market expert and member of the Egyptian Association of Technical Analysts concluded that these offers are expected to extend to other sectors in the coming period due to the current low price levels of shares compared to the actual values ​​of those shares and companies because of their assets and ability to sell.

For his part, Mohamed Kamal, a member of the board of Elite Financial Consulting, expected the main index of the Egyptian Stock Exchange to maintain the corrective wave, which it continued during 7 consecutive sessions; To target the level of 9450 points this week.

He continued that the rise of the main index is a corrective wave, not an upward trend, with the support of activation of government stimulus plans, and news of the launch of my company Al-Watania and Net, which means that at any time can stop , so it is necessary to stay away from marginal purchases by investors.

The Cabinet agreed that it approved the qualification of a national company for the sale and distribution of petroleum products and the National Company for Production Projects “Safi” affiliated to the National Service Projects Organization, in preparation for the listing on the stock exchange.

Prime Minister Mostafa Madbouly also held a meeting last Thursday to follow up the government’s program of offers in the stock exchange, in which he indicated the government’s tendency to increase the offer of companies whose securities are listed.

Madbouly reviewed the program for offering shares of a number of state-owned or contributing companies in a number of sectors, notably the public sector, petroleum, transport, financial technology and others.

Weekly performance:

The Egyptian Stock Exchange, after a continuous decline, managed to make gains during this week’s trading, which saw an increase in its five sessions, which coincided with the announcement of new proposals.

The market capitalization of shares listed in the domestic market today, Thursday, recorded 622.7 billion pounds, compared to 597.7 billion pounds at the end of last week, which gained about 25 billion pounds.

The EGX30 index closed at 9289 points, recording an increase of about 6%, while the EGX70 EWI rose by 6.17%, closing the period at 1798 points, and the S&P index rose by 6.26% and closed at 1575 points.

As for the EGX30 capped index, it recorded a gain of about 6%, closing at 11378 points, while the EGX100 EWI index gained about 6.3%, closing the period at 2642 points .

The total trade value this week was about 11.2 billion pounds, while the volume of trading was about 2.1 million papers executed on 168 thousand transactions, compared to the total trade value of one billion pounds and the trading volume of one million papers that executed on 1,000 transactions in the past week.

Equities accounted for 42% of the total trading value in the booth, while the value of bond trading during the week represented about 57%.

Egyptians’ transactions accounted for 74% of total transactions on listed shares, while foreigners accounted for 18.7% and Arabs for 7%, after transactions are excluded.

It is worth noting that the Egyptians’ transactions represented 72.1% of the trading value of the listed shares since the beginning of the year after transactions are excluded, while the foreigners recorded 18.8% and the Arabs 9.2%. Excludes transactions since the beginning of the year.

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