Expectations that the pharmaceutical, banking and tourism sectors will lead a new wave of rise
The banking, pharmaceutical, and tourism sectors led liquidity flows on the Egyptian Stock Exchange during Monday’s trading session, pushing the main index towards new record levels.
The main index, the EGX30, rose by 0.4% to close at 53,633 points, while the small and medium-sized stock index, the EGX70, rose by 1.51%, recording 18,124 points, and the broader EGX100 rose by 1.16%, to close at 23,984 points.
Haitham Abdel Samie, head of the technical analysis department at the Pharaonic Securities Trading Company, said that the market succeeded in recovering high trading volumes and values that exceeded 11 billion pounds.
He added that liquidity began to move more towards the leading stocks, led by the banking sector stocks, as the Commercial International Bank and Abu Dhabi Islamic Bank continued to provide supportive performance for the main index, thus enhancing the chances of breaching the level of 54 thousand points during the coming sessions.
He explained that the real estate sector is still one of the main candidates to participate in leading the rise, especially with the movements of a number of major stocks, which supports the index targeting the level of 55 thousand points if it succeeds in surpassing the current resistance.
He pointed out that the pharmaceutical sector continues to attract investor interest, benefiting from the purchasing momentum its shares have witnessed during the recent period, anticipating the continued positive performance of the sector in conjunction with the improvement in risk appetite among dealers.
For her part, Marwa Abu Al-Nasr, Head of the Technical Analysis Department at Faisal Securities Trading Company, said that the banking sector was the most prominent driver of the market during the session, supported by the positive performance of the Commercial International Bank stock, which closed near the level of 140 pounds, in addition to the Abu Dhabi Islamic Bank continuing to move above the level of 50 pounds, supported by strong trading volumes.
She added that the pharmaceutical sector maintained its positive momentum, with the continued upward movements of stocks such as Rameda and Saba Pharmaceuticals, which reflects the trend of a segment of investors towards stocks with strong fundamentals and high growth opportunities.
She pointed out that the tourism sector has become one of the sectors worth monitoring during the coming period, in light of the emergence of positive technical signals on a number of stocks, including Orascom Development, Pioneers and Tourist Resorts, which enhances the chances of the sector’s continued strong performance.
She added that the widening base of the rise among the various sectors is one of the most prominent positive indicators currently, as the rise is no longer limited to leading or speculative stocks, but rather has extended to various sectors, which supports the sustainability of the market’s upward trend.
It stated that the EGX70 index continued to record new historical levels, exceeding 18,000 points for the first time, without technical indicators of weakness appearing so far, while targeting levels ranging between 18,200 and 18,500 points in the short term.
Trading values recorded about 11.1 billion pounds through the implementation of more than 242 thousand transactions on about 3.5 billion shares, while the market capitalization of registered shares amounted to about 3.9 trillion pounds.
Individual investors accounted for 80.59% of total transactions, compared to 19.4% for institutions, while Egyptian investors recorded 90.72% of trades, compared to 6.53% for foreigners and 2.75% for Arabs.
Foreigners tended to buy with a net amount of 129 million pounds, indicating the continued attractiveness of Egyptian stocks to foreign institutions, while the transactions of Egyptian and Arab institutions tended to sell and take profits, coinciding with the market approaching one of the most important levels of technical resistance during the current year.
