Qalaa to move between EGP3.5 to EGP3.85 this week: analyst

Sunday 22 July 2018 10:06 PM

Qalaa Holding
Qalaa Holding

By Ragab Ezz El-Deen & Mona Abd El-Bary
The Egyptian Stock Exchange ended Sunday's trades on a down note amid heavy sell-offs led by the Arabs.
EGX30 fell by 0.73% to 15303pts, EGX70 by 0.33% to 750pts, the broader EGX100 by 0.50% to 1917pts, EGX50 by 0.84% to 2614pts, and EGX20 by 1.11% to 15301pts.
Stock exchanged today amounted to EGP383mln, as Egyptian, Arab  institutions and Arab investors sold stocks worth EGP29.5mln, EGP13.2mln, and EGP2.2mln respectively.
Egyptians, foreigners and foreign institutions bought stocks worth EGP33.6mln, EGP5.1mln and EGP6.2mln respectively.
Out of 159 stocks, 34 rose, 83 fell and 42 remained unchanged.
In first session trading the stock, Qalaa Holding seized up to 35% of Sunday's transactions although trading the stock was halted for almost half duration of the session.
By the end of the session, Qalaa Holding retreated by 5% to close at EGP3.58 totaling EGP134mln exchanges at 34.9% of today's EGP383mln trades.  
Qalaa Holding stock saw robust profit-taking at today's session after the stock was temporarily suspended from July 11 to July 19 in response to a EGX's injunction awaiting the receipt of statement from the Financial Supervisory Authority commenting on having EGP6.34 as a fair price of the stock.
FSA's statement was released last Thursday to gave rise to a commotion at the capital market  during the past two days, as it unveiled FSA's disregard for the stock evaluation by the independent financial judge working at a subsidiary of Al-Qalaa Holding.
" Al-Qalaa stock is expected to range between EGP2.90 to EGP3.60 during this month," said head of technical analysis at Aman Securities.
Head of Local Institutions Division at Rowad Securities Mohmed Kamal predicts the stock to move between EGP3.5 to EGP3.85 this week, adding that failure to stay firm above EGP3.5 level may drive it to retreat to EGP3.25.