Egypt shares tar­get 18,000 points as for­eign in­vestors likely to build new po­si­tions

EGX saw pos­i­tive per­for­mance last week, de­spite ris­ing geopo­lit­i­cal ten­sions

The Daily News Egypt - - Stock Market - By El­sayed Soly­man

Egyp­tian shares are ex­pected to move up­wards this week, as for­eign in­vestors are likely to em­bark on build­ing new po­si­tions in blue-chip stocks ahead of the im­mi­nent earn­ings sea­son.

The indices of the Egyp­tian Ex­change (EGX) are likely to see a side­ways trend this week,Watheeqa Se­cu­ri­ties Bro­ker­age Branch Man­ager Ahmed Ab­del Hamid said.

The bench­mark in­dex EGX30 is pro­jected to move be­tween 17,400 and 17,700 points, Ab­del Hamid added.

The EGX is likely to main­tain the pos­i­tive per­for­mance as long as the EGX30 is set­tled above 17,000 points, he noted.

For his part, the head of the cap­i­tal mar­ket com­mit­tee at the African Eco­nomic Coun­cil, Ay­man Fouda, said that the Egyp­tian stock mar­ket is likely to con­tinue the side­way-toris­ing trend dur­ing this week’s trad­ing ses­sions.

The EGX30 in­dex has a short­term re­sis­tance at 17,730 and 17,850 points, and has sup­port at 17,540 and 17,450 points, Fouda high­lighted.

The small- and medium-caps EGX70 in­dex has a short-term re­sis­tance at 878 and 885 points, and sup­port at 860 and 855 points, he pointed out.

Fouda rec­om­mended in­vestors to hold onto their stocks be­tween sup­port and re­sis­tance lev­els to pro­tect earn­ings,in line with per­form­ing quick trades.

He ad­vised traders to pick stocks with pos­i­tive fi­nan­cial news that are likely to rise and to avoid buy­ing on mar­gin.

EGX30 keeps rally alive

The EGX closed on an up note last week, de­spite the ris­ing geopo­lit­i­cal ten­sions across the re­gion.

The bench­mark in­dex EGX30 gained 0.94%, or 165.33 points, and closed at the level of 17,781.02 points.

Traded vol­umes to­talled 1.14bn shares with a to­tal turnover of EGP 5.19bn.

The mar­ket cap­i­tal in­creased by EGP 3.7bn to EGP 981.4bn,com­pared to EGP 977.6bn last week.

The Com­mer­cial In­ter­na­tional Bank (CIB) recorded its high­est gains in months, of 2.85%, to EGP 89.36 per share.

EGX70 slipped 0.06% to 867.15 points, while the broader in­dex EGX100 rose 0.46% to 2,273 points.

The equal-weighted in­dex EGX50 lev­elled up 0.44% to 3,008 points.

Arab in­vestors were net buy­ers with a net EGP 306.7m,while Egyp­tian and for­eign in­vestors were net sell­ers at EGP 278.8m and EGP 27.8m re­spec­tively.

Fi­nan­cial an­a­lyst Saed Elfekky said that the main in­dex is now tar­get­ing to re­store the 18,080 level,not­ing that the Egyp­tian Ex­change is set to main­tain its up­wards trend on the short and medium terms.

Mean­while, Egyp­tian Ex­change Chair­per­son Mo­hamed Farid said last week that fi­nan­cial de­riv­a­tives are ex­pected to be launched in the Egyp­tian se­cu­ri­ties mar­ket for the first time over the com­ing pe­riod.

The fi­nan­cial de­riv­a­tives are one of the fi­nan­cial in­stru­ments that limit risks for in­vestors, Farid re­marked on the side­lines of Mid­dle East In­vest­ment Con­fer­ence 2018.

Ear­lier this month, Farid pro­jected that only two state-run com­pa­nies would be listed on the EGX this year.

Mean­while, the fi­nan­cial in­di­ca­tors of Ara­bian Food In­dus­tries Co (Domty) showed it has turned to profit dur­ing the first quar­ter of 2018 due to higher sales.

Net profit stood at EGP 40.5m in the three-month pe­riod ended March 2018, against a net loss of EGP 6m in Q1 2017, the dairy prod­ucts firm said in a fil­ing to the Egyp­tian Ex­change.

Sales grew to EGP 591.9m in Q1 2018, from EGP 471m in the pri­o­ryear pe­riod.

Domty had pre­vi­ously posted a net profit of EGP 61.52m for the full-year ended De­cem­ber 2017, com­pared to EGP 25.5m in prof­its in 2016,in­clud­ing mi­nor­ity share­hold­ers’ rights.

In other mar­ket news,Amer Group Hold­ing Co has started the ex­e­cu­tion of the 90-fed­dan first phase of Porto Said pro­ject in western Port Said.

The pro­ject will be im­ple­mented at a cost of EGP 3bn,Amer Group added.

For his part, Port Said Gover­nor Adel El Ghad­ban said that the pro­ject will pro­vide 6,000 per­ma­nent jobs, in ad­di­tion to 5,000 tem­po­rary ones.

This pro­ject will up­grade the tourism and ser­vices lev­els in Port Said, as well as boost the gover­norate’s hos­pi­tal­ity ca­pac­ity,El Ghad­ban noted.

Mean­while, Porto Group Hold­ing aims to achieve EGP 2.1bn in rev­enues from the 439 units of the shore area of Porto Dead Sea.

The in­vest­ment cost of the area amounts to around EGP 1.6bn, and the com­pany is ex­pected to recog­nise the rev­enues dur­ing 2018 over about 70 units, the Egyp­tian real es­tate devel­oper said in a fil­ing to the Egyp­tian Ex­change.

The pro­ject is com­prised of two ar­eas, namely the 780,500 sqm moun­tain ar­eas and the shore area span­ning 19,500 sqm in a con­structed space of 66,600 sqm, ac­cord­ing to the fil­ing.

On Sun­day 15 April, Porto Dead Sea, a sub­sidiary of Porto Group, an­nounced the be­gin­ning of de­liv­er­ing the first phase of Porto Dead Sea in Am­man, Jor­dan.

On another note, EFG Her­mes is ex­pected to ob­tain the reg­u­la­tory ap­provals to man­age Is­lamic funds within a month.

These funds could ex­ceed EGP 100m in value, EFG Her­mes As­set Man­age­ment Man­ag­ing Di­rec­tor Khalil El Bawab said at a press con­fer­ence last week.

Fi­nally, Pi­o­neers Hold­ing Com­pany for Fi­nan­cial In­vest­ment’s board has ap­proved a year-long EGP 2.9bn in­vest­ment plan.

The com­pany will fi­nance the plan through EGP 1.8bn di­vest­ments, Pi­o­neers Hold­ing said in a fil­ing to the Egyp­tian Ex­change on Thurs­day.

Di­vest­ments will in­clude a par­tial exit from its sub­sidiary Rooya Group, in ad­di­tion to other full or par­tial ex­its in other in­vest­ments, the com­pany added.

The plan will be also fi­nanced through rais­ing the com­pany’s cap­i­tal by EGP 1.1bn af­ter ob­tain­ing ap­provals of the gen­eral meet­ing and the reg­u­la­tory au­thor­i­ties over the com­ing pe­riod, the com­pany noted.

The EGX-listed firm in­di­cated it has sev­eral promis­ing in­vest­ment op­por­tu­ni­ties in dif­fer­ent sec­tors.

The board had pre­vi­ously ap­proved a 30% cap­i­tal in­crease to EGP 4.68bn from EGP 3.6bn.

The bench­mark in­dex EGX30 gained 0.94%, or 165.33 points, and closed at the level of 17,781.02 points

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