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EGX’s bearish trend raises no worries - Analyst

EGX’s bearish trend raises no worries - Analyst
Trading volume amounted to 164.8 million shares exchanged at a turnover of EGP 1.06 billion.

By: Heba El-Kordy

Cairo – Mubasher: the Egyptian Exchange (EGX) saw a downward trend during Monday’s trading session, losing 70 points amid buoyant liquidity.

By 12:49 pm Cairo time, the benchmark EGX30 index shed 0.45% to 15,186 points.

Blue chips were mostly down, except for Domty, Pioneer Holding, Egyptian Financial and industrial (EFIC), and Madinet Nasr Housing, which rose 1.98%, 0.69%, 0.42%, and 0.36% respectively.

This bearish trend seen by the EGX on Monday is not worrying, but it may show that investors are not optimistic about the Cabinet reshuffle, head of financial research at El Marwa for Securities and Brokerage Mohamed El-Naggar said.

The declining performance is not worrying amid high trading volume and foreign investors’ buying, El-Naggar highlighted.

Trading volume amounted to 164.8 million shares exchanged at a turnover of EGP 1.06 billion.

Foreign and Arab traders were net buyers with EGP 481.3 million and 117.6 million respectively, while Egyptian traders were net sellers with EGP 597.6 million.

The heavyweight Commercial International (CIB) is trying to find a buyer between EGP 78.5 and EGP 78.4 to maintain rising over the coming sessions, the analyst pointed out.

The CIB fell 1.24% to EGP 78 at a turnover of EGP 68.3 million.

El-Naggar forecast the EGX30 index to test 15,600 points by the last week of January, followed by a strong downward wave.

 

Translated by: Mai Ezz El-Din