The EGX30 index closed at 31,587.04 points during September trading, recording an increase of about 2.64 percent, and the EGX70 EWI index recorded an increase of 6.53 percent, ending the month’s trading at 7,538.3 points.
As for the EGX30 capped index, it recorded an increase of about 3.63 percent, closing at 39,020.69 points, and the EGX100 EWI index recorded an increase of about 5.75 percent, closing at 10,732.02 points.
In terms of transactions in the third quarter of the current year (July: September 2024), the market capitalization of stocks listed on the Egyptian Stock Exchange recorded gains amounting to more than 308 billion pounds, closing at the level of 2.184 trillion pounds at the end of September trading, compared to the level of 1.876.3 trillion pounds at the end of trading. Last June.
The EGX30 index rose by about 13.76 percent during the third quarter, and the EGX70 EWI index recorded an increase of 21.7 percent. The EGX30 capped index also rose by about 14.54 percent, and the EGX100 EWI index rose by about 19.44 percent.
Promising performance despite the challenges
For his part, the Managing Director of Alpha Financial Investment Management Company, Mohamed Hassan, said in exclusive statements to the “Eqtisad Sky News Arabia” website, that the success of the main index of the Egyptian Stock Exchange in stabilizing above the level of 30 thousand points during the transactions of the third quarter of this year is a positive progress, especially Given the ongoing tensions and events taking place in the region.
He added that the market’s ability to take an upward path, despite it being relatively weak compared to what was hoped for, is a positive point in light of the current stage’s data, which is reflected in the stability of the market movement and the state of cohesion. He explained that this reflects investors’ good vision of the market, supported by current purchases and the attractive price levels of shares, as well as the availability of investment opportunities capable of attracting more investments in the next stage.
He pointed out that a number of sectors recorded positive performance, such as the real estate sector, which achieved record numbers and sales, in addition to the banking and non-banking financial services sector.
Hassan noted that the continued market movement in this direction gives more positive expectations regarding the ability of the main index of the Egyptian Stock Exchange to target new resistance levels at 32,500 points, in addition to targeting the level of 34,500 points during the last quarter of the current year. He also expected that there are strong chances for the EGX70 index to breach the 8,000 point level, which will support the movements well.
Internal incentives
The economic expert and member of the Board of Directors of Al-Hurria Securities Company, Dr. Hanan Ramses, said in exclusive statements to the “Eqtisad Sky News Arabia” website that the Egyptian Stock Exchange witnessed during the third quarter’s trading some fluctuations affected by geopolitical events, the frequency and impact of which on the market varies in light of the many The frequency of internal news related to dividends and business results.
She explained that some internal (local) news represents important incentives in the face of external repercussions and tensions, which contributes to stimulating trading and supporting it in a positive way, thus enhancing the ability to continue the relatively upward performance.
She pointed out that the market witnessed varying increases, ranging from reaching the level of 29,500 points, 30,100 points, then 30,500 points, with rises and falls at a slow pace during the August sessions. With the advent of September, the market was able to exceed the level of 30,900 points, especially with the focus of Arab, foreign and local institutions on forming purchasing centers, and with the increase in the rates of foreign transactions.
She added that the transactions of that period witnessed bonds occupying the largest proportion of trading, explaining that if the state reduced bond interest, this would support a greater direction of liquidity towards stocks.
Ramses also pointed to the improvement in the performance of a number of sectors, such as chemicals and real estate, in addition to the increase in Arab and foreign transactions, and the impact of some changes in FTSE reviews and international indices, despite Egyptian stocks being poorly represented so far. She expected that if its representation increased, this would contribute to increasing the proportion of foreign investments.
I expected the stock market to witness stability during the month of October with the restoration of dealer activity, in addition to opportunities to begin implementing the government offering program, provided that the shares are fairly priced and the shares expected to be offered are determined.
Third quarter trading
The transactions of the third quarter of this year witnessed a total trading value of about 3,880.5 billion pounds, while the trading volume amounted to about 67,372 million papers executed over 7,213 thousand transactions.
Shares accounted for 8.23 percent of the total trading value within the booth, while the trading value of bonds/bills represented about 91.77 percent during the same period.
Where are the indicators heading during the last quarter?
For her part, Rania Yacoub, Chairman of the Board of Directors of Three Way Securities, in exclusive statements to the “Eqtisad Sky News Arabia” website, expected that the geopolitical tensions taking place in the region would affect the movement of markets during the last quarter of this year. She pointed out that despite the US Federal Reserve’s move towards lowering interest rates, the situation is still generally one of anticipation in most of the region’s markets, especially in the Egyptian Stock Exchange, in light of the current tensions and the continued rise in inflation rates and their repercussions on the market.
Regarding the movement of the basic sectors, I mentioned that there are a number of sectors on the Egyptian Stock Exchange that are expected to continue their activity despite the state of anticipation. Among these sectors, the real estate sector stands out, which achieved strong sales, in addition to investors’ tendency to invest in real estate as a way to hedge fears. It is also expected that the construction and building materials sector and non-banking financial services will also remain active.
As for the main index of the Egyptian Stock Exchange, Yacoub explained that the level of 34 thousand points, which represents the previous historical peak, is still a target for the index in the medium term.
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