(MENAFN - Daily News Egypt) The stamp duty placed pressure on the stock exchange trading last week as it is activated on 17 May, but foreign buyers supported the index of the stock exchange to stand at 13,000 points, amid expectations of moving towards the 13,200 points level this week.
The director of the technical analysis division of Osool Securities Brokerage, Ehab Saeed, said that the lack of clarity on the fate of the stamp duty on the stock exchange would pressure the market and the continuation to move sideways during the current week's transactions.
He expected the market to continue moving sideways between 12,600 and 13,100 points. The rumours about the fate of the stamp in the recent days have led to a negative impact on stocks and the resolution of the fate of the tax this week is an essential matter, he added.
The competition on the National Company for the Maize Products was intensified after Egypt Kuwait Holding Company submitted a fourth acquisition offer through one of its subsidiaries. The stock rose by 5% during last Thursday's transactions and recorded EGP 44.5 level.
In a research paper issued by the CI Capital Holding, the benchmark index reached 13,000 points, which represents a 61.8% correction percentage from 13,400 points to 12,345 points.
"We may see a temporary decline at the 12,900-12,850 points zone to complete its upside movement to the 13,170-13,200 points area to 13,500 points," Saeed said.
She added that as long as the index settled above the area of 12,300 points and will continue to rise on the medium term and will be the next target at 14,500 points and then at 14,000-13,800 points areas.
The Egyptian Transport and Commercial Services Company index rose to 9.89% to close at EGP 8.78 at a ratio of 25.2% over the week. The index of the Global Telecom Holding Company fell by 3.78% to close at EGP 6.88. The index of EFG-Hermes Holding declined to 1.79% to EGP 24.63.
Mohamed Lotfy, head of the brokerage sector in Osool securities said that the market is continuing with a sideways movement during the current period, which is characterised by the absence of positive incentives for stocks. The main short-term index targets are at the level of 13,000 and 13,200 points.
He pointed out that approving the investment law form a catalyst for the market, but it did not come enough and the government IPOs, such as Enppi and Banque du Caire, are able to make a difference in pumping new liquidity.
Through Thursday's trading, the value traded registered EGP 853.2m, foreign investors closed on net purchases worth EGP 60.7m, while Egyptian and Arab investors recorded net sales of EGP 24.6m and EGP 36.1m respectively.
Misr Oil & Soap rose by 5% during last Tuesday's trading, recording EGP 14.16 before falling to 3% during last Thursday's approvals. The company's board of directors supported the stock exchange through buying 1 million treasury shares at EGP 15.3 after a series of significant declines recently.