Industrial companies lead the market to complete the dull performance
“Strange”: International trade decline will lead the EGX 30 to target the level of 13,750 points
The negative news continued to impact on the performance of the Egyptian shares as Ezz Dekheila Steel and CAE (ESRS) fell 10% and 5.9% following a court ruling last Thursday revoking the decision to impose protection fees on imports of pallets. Impact on the factories of the full cycle of iron in Egypt and raising the cost of production.
Traders expected that the weak performance of the market will continue with the anticipation of higher inflation after the rise in fuel prices last Friday. The inflation data is due to be announced in June next Wednesday from the Central Agency for Mobilization and Statistics.
The index of the EGX30 index closed 0.11% higher at Sunday’s close, settling at 14013 points. The EGX 50 index was down 0.43% and settled at 2078.1 points.
Sameh Gharib, head of technical analysis at Al-Rohos Securities Brokerage, suggested that the EGX30 index will test the 13750 level in the next session, as a result of the continued decline of the share of the largest relative weight of “Commercial International”.
Commercial International Bank (CIB) closed yesterday’s session at a low of EGP 72.3, as well as a series of declines in other leading stocks such as Telecom Egypt and Ezz Steel.
The EGX 70 index of medium-sized shares declined by 4.52% to close at 570.3 points. The EGX 30 capped index rose 0.12% to close at 0.12 points. The broader EGX 100 index declined 3.89% to settle at 1464.86 points.
Gharib attributed the decline in the average stock index to the decline of the share Ezz Dekheila Steel, 10% at the end of yesterday’s session, and being the weight of the largest value in the index, as a result of cancellation of the decision to impose protection tariffs on imports of pallet.
Gharib pointed out that traders need to enter and form purchasing centers in stocks that constitute the main index with good financial performance.
Mohammed Kamal, director of corporate trading at Al Rowad Securities Brokerage Company, said the EGX70 index will target 565 points in the coming sessions as a result of individuals’ fear of a wave of inflation, which is accompanied by reduced fuel subsidies and increased prices for all kinds of products.
Kamal added that the main index will continue between the levels of 13,800 points and 14,150 points, and that the penetration of these levels will be after the volume of trading higher than one billion pounds, continuously and clarify the vision of the general trend of the market.
The market recorded yesterday trading value of 470.03 million pounds, through the circulation of 121 million shares, the implementation of 11.76 thousand selling and buying, after the shares of 152 companies were restricted, rose 31 shares, and the prices of 80 shares, while the prices of 41 shares changed To settle the market capitalization of the listed shares at LE 746.23 billion.
On the other hand, net buyers and sellers are net sellers, buying at EGP 101.24 million, buying 71.58% of total buy and sell trades. Meanwhile, Arab and foreign investors are net sellers at EGP 41.84 million and EGP 59.4 million respectively, , And 17.68% of trading.
Individuals took up 57.35% of the trading, headed towards buying, with the exception of foreign individuals who preferred to sell with a net net of EGP 1 million. Institutions took up 42.65% of the turnover, with the exception of Egyptian institutions which recorded net purchases of EGP 76.4 million. Selling EGP 43.58 million and EGP 58.39 million respectively.