Farag: The index is still in a downward trend, with corrective movements upward.
- Anticipation dominates the performance of the Egyptian Stock Exchange during this week’s trading after the government decided the fate of the capital gains tax, amid expectations that the sideways movement will end after the impact of global market declines on emerging markets ends.
- Last week, the Council of Ministers announced postponing the collection of the tax on capital gains from stocks listed on the stock exchange until the year 2024 until the March-April 2025 tax season, and waiving its application for the year 2023.
- Kamco Invest research believes that the decline in global financial markets over the past month affected the performance of the region’s markets as well as emerging markets.
- It believes that these declines mainly reflect the entrenchment of inflation rates, especially in the United States, in addition to profit-taking operations and the continuation of geopolitical issues.
- The main index of the Egyptian Stock Exchange, the EGX30, rose by about 0.76% to 26,113.7 points at the end of last week’s trading, and the EGX70 EWI index fell by 3,34% to the level of 5,796.9 points, while the capped EGX30 index rose by about 1,11% to the level of 32,005 points, and the broader EGX100 index fell by 2.2 11 TP3T reached the level of 8321.9 points, while the S&P index recorded a decrease of about 0.65% to the level of 5117 points.
- Basem Abu Ghanima, head of the technical analysis department at Arabia Online Securities Trading Company, expected that the EGX30 would test a major resistance level of 26,850 points, then 27,200 points, reaching the level of 28,000 points, from which the index would bounce down, completing the corrective movement.
- He pointed out that the index rebounded at the support levels of 24,000 points and 24,500 points with support from strong purchasing powers, expecting the index to test the support levels again in a corrective movement, which will be the last, with which the pace of decline will end in the medium term.
- He continued that this bounce to test resistance levels is an opportunity that should be exploited in quick trading for investors who have losses or have marginal transactions.
- The Egyptian Stock Exchange witnessed trading worth about 13.7 billion pounds at the end of last week, through the trading of 3.2 billion shares, carrying out 472 thousand buying and selling transactions, compared to the trading of the previous week, which amounted to 13.5 billion pounds, and the amount of trading amounted to about 3.5 billion securities executed on 409. One thousand buying and selling transactions, and the market capitalization of restricted shares increased by 0.06% to 1.767 trillion pounds.
- Abdullah Farraj, head of the technical analysis department at Tycoon Securities Brokerage Company, suggested that the main index would test the resistance level of 26,450 points, reaching the level of 27,100 points, indicating that it is still in the downward trend with an upward corrective movement in the middle.
- He pointed out that this rebound must be exploited for trading operations, taking into account the emergence of selling forces, which may push the index to test the support levels of 25,500 points and then 24,635 points.
- Egyptians' transactions accounted for 86.9% of the total trades in registered shares, while foreigners accounted for 8.3% and Arabs 4.8%, after excluding transactions. Foreigners recorded net sales worth 161.1 million pounds, while Arabs recorded net sales worth 73.6 million pounds.
- Egyptians' transactions represented 88.1% of the trading value of restricted shares since the beginning of the year after excluding trades, while foreigners recorded 5.5% and Arabs 6.4%. Foreigners achieved net purchases of about 2.2 billion pounds and Arabs recorded net selling of about 1.6 billion pounds on the listed shares after excluding trades.
