Stock exchange halts 9-session losing streak

Egypt’s main stock index ended trading Thursday above 53,000. The 2.24% gain ended nine consecutive sessions of decline and broke a market losing streak that lasted for nearly two weeks, according to stock exchange data.

Capital market expert Hossam El-Ghayesh told Al Manassa that the depth of the correction was greater than expected, predicting that the EGX30 index could rally to 56,000 points as the primary resistance level, and if breached, could pave the way toward targeting the 63,000-point level.

Yasser El-Masry, managing director of Arab African International Securities, explained to Al Manassa that the main index’s recent decline was driven by regional geopolitical events and global tensions, despite local interest rates remaining unchanged.

On September 24, the Central Bank of Egypt’s Monetary Policy Committee kept interest rates unchanged at 19%, 20%, and 19.5% for the overnight deposit rate, overnight lending rate, and the central bank’s main operation rate respectively, while also maintaining the discount and credit rate at 19.5%.

Mohamed Maher, chairman of the Egyptian Securities Association, believes that market performance in the short term will depend largely on the index’s ability to maintain a level above 50,000 points.

Maher told Al Manassa he expects the index to extend its recovery, but noted that 50,000 points remains a crucial floor below which the market risks sharper losses.

El-Masry also expects the main stock index to continue its upward trajectory in the near future.

The main EGX30 index fell 0.77% to close at 51,894 points Wednesday, driven by net sales of 446.96 million pounds ($8.54 million) from Egyptian investors. Conversely, Arab and foreign buyers recorded net purchases of 34.907 million pounds ($667,000) and 412.053 million pounds ($7.87 million), respectively.