EGX30 to hover near 18400pts by the year end: analyst

Saturday 08 September 2018 08:55 PM

Egyptian Stock Exchange
Egyptian Stock Exchange

By Sherif Omar & Mona Abd El-Bary
Analysts are upbeat about moves of Egypt-based investment banks trading on the Egyptian Stock Exchange  until  the end of this year as well as about the continued inflows of foreign investors to the more politically and economically stable Egypt which is becoming the most attractive among emerging markets.
Regarding the performance of the benchmark EGX30 main index, some analysts predict it may hover near 17000pts amid  the out-performance of stocks of the real estate companies and the Commercial International Bank, whereas others expect it to go further towards 18400pts.
 EGX's positive factors referred to by analysts include the robust financial results reported by listed companies, a purchasing trend led by foreign investors, the wrapping up of corrective stock declines that took place in the second quarter of this year. Also, the imminent public offering of state-owned companies is fueling the upcoming rally.
The sectors of real estate and non-banking services are recommended by analysts to gain attention of foreign investors.   
" EGX30 is expected to test levels near 18400pts by the year end on the backdrop of positive performance of stocks, a fact that has been  demonstrated by better financial results of listed companies," said head of technical analysis at Pharos Securities Abd El-Rahman Metwaly.
On the short term, he predicted EGX30 to hover near 16000pts, then 17000pts on the medium term, advising traders to take wait-and-see approach in anticipation of an imminent rally.
" Once EGX30 test 17000pts level, a profit-taking trend will follow, a logical and healthy move that will enforce stocks to take  a sideways dipping trajectory after which the index may rise."   
Mohmed El-Asar, head of technical analysis division at Aman Securities, said that real estate companies will take robust moves, as Talaat Mostafa stocks will head towards EGP13, Palm Hills towards EGP3.60, MNHD towards EGP12.5, SODIC towards EGP26.5, HELI towards EGP38 and CIB towards EGP91.
" EGX70 is expected to move towards 760pts amid strong moves of some listed companies, notably Oil Extracts and Derivatives which may head towards EGP1.50, Foodico towards EGP15, ELSH towards EGP7.80, and Alico towards EGP0.90," said he.