EGX indices see horizontal performance in week

CAIRO – 14 July 2017: The benchmark EGX30 was able to continue rising towards its previous peak at 13,690 points, which was able to break above on Thursday to achieve its highest level since inauguration registering 13,864 points.

The index is expected to continue rising to 14,000 points during the current week.

The main index was supported by the strong performance of the International Commercial Bank (CIB) after it achieved to approach a new historical level at LE 87.80 ($4.8), surpassing the resistance level at LE 85.50, which may be a stimulant for the stock to reach LE 90.

The good performance of the CIB, of which the relative weight jumped to 45.7 percent, followed the unexpected move of the Central Bank of Egypt (CBE) on July 6 raising the interest rate by 200 basis points.

Although rate hikes usually negatively affect companies, but it seems that the Egyptian banks sector was a direct beneficiary for its direct relation to the treasury bonds’ yields.

Talaat Moustafa Group (TMG) Holding's movements were characterized by the horizontal performance during the last week, where the stock was trading between LE 7.75 and LE 7.53.

It is expected that the horizontal movements will keep their control over the stock's performance in the current week as long as it continue over the level of LE 7.30.

EFG Hermes failed to surpass the previous support level, which turned to a resistance one at LE 23.8 – LE 24 before ending Thursday's session at LE 23.18. Focusing on the previous support level is projected to delay the stock from advancing.

Horizontal movements imposed its control over Global Telecom as well after it closed the last session at LE 6.72, which is below the previous resistance level of LE 7.10 and above the new support level of LE 6.70.

EGX70 met the expectations and succeeded to keep rising after surpassing the resistance level at LE 672 points to approach the next resistance level at 690 points.

During the second half of the week, some of the index's stocks failed to advance, which obliged the index to move horizontally below the aforementioned resistance level and close at 685 points.

The index is forecasted to focus on the next resistance level at 700 points, which is expected to delay it for a while from continuing to grow.