Egyptian Exchange’s benchmark withstands sales pressure this week

Muhammed Khalid , Wednesday 27 Sep 2023

The Egyptian Exchange (EGX) main index withstood sales pressure and performed positively in the week ending on 27 September, despite falling from its 20,354 historic high on Tuesday and the decline of both the EGX70 and EGX100 indices.

EGX trading hall.
EGX trading hall. Ahram Gate.


“The market has seen corrective (sales) deals as investors hurry to gain profits after the leaps in the main index. Sales pressures hit hardest in the housing sector,” Mahmoud Atta, financial market analyst, told Ahram Online.

Over the week, the benchmark index, EGX30, rose 0.47 percent, ending at 20,174.28 points.

In contrast, the EGX70 index declined by 1.14 percent, closing at 3,785.08 percent. The EGX100 index also slipped 0.56 percent to stand at 5,643.2 points.

“Investors tended to sell stocks in small and medium companies (SMEs), moving towards lead stocks, which negatively impacted the EGX70, and in turn affected the EGX100, which have all companies listed on the EGX70,” Atta said.

Led by the surge in the main index, market capitalization climbed 1.2 percent to reach EGP 1,373.1 billion.

The total trading value surged 775 percent to reach EGP 115.5 billion during the week, up from EGP 13.2 billion last week.

“The huge amounts of trading will help the market remain stable and rebound quickly to higher levels,” Atta explained.

Foreign investors purchased nearly EGP 300 million worth of shares more this week than they sold. Arabs ended the week with net purchases of EGP 189.5 million.

Year-to-date, foreign investors sold nearly EGP 7.5 billion worth of shares more than they sold, while Arabs had net purchases of about EGP 2.5 billion.

Short link: