Defeated accidental performance on the Egyptian Stock Exchange during the month of August sessions where the market rallied to its highest level in more than a year and then squandered most of their gains amid anticipation to start taking concrete steps towards the implementation of the government's program of economic reform.
The monthly report of the Stock Exchange showed a variation in the performance of market indices climbed the main index of the Stock Exchange "Eiji X 30" - which tracks the performance of the 30 largest listed companies - by about 2.19% to 8158 points.
The secondary market tended to decline as it lost indicators "Eiji X 70" index - which is predominantly formed. Small and medium-sized shares - 1.13% to close at 357 points.
It fell "EGX 100" broader index 3.15% to record 807 points.
And lost market value of shares of listed companies of about 700 million pounds, up 0.2% to hit Market capitalization 413.1 billion pounds.
The total trading rose to $ 20.8 Milirzinah compared to the total turnover of 13.8 billion pounds in July.
Monetary agreement
The market rallied earlier this month with the start of Egypt's negotiations with the International Monetary Fund.
He said Ehab Saeed Director of Technical Analysis administration brokerage firm said the market have been affected positively in the first week of August to declare the government's program of economic reform with funding from the International Monetary Fund, which first began Mbahathath with the Egyptian side with the beginning of the month.
He said the market received support from President Abdel Fattah al-Sisi's remarks in which he emphasized the near solving the dollar crisis and eliminate the parallel market, indicating the proximity of a new cut in the value of the pound, which was exploited by traders in the formation of a medium purchasing centers term proactively before taking that step, which of the stock market is expected to pay more towards record highs.
The government has announced a program of economic reform worth $ 21 billion, of which $ 12 billion loan from the IMF on the outcome of the next three years is needed to put public companies stock exchange quotas.
According to Wael grape chairman and managing director of financial management of the governor that the market recorded the highest close in more than a year affected by reaching an agreement with the IMF to lend Egypt.
He said that the loan is a testament of the confidence in the viability of the international Egyptian economy to borrow and meet its obligations.
Pound baffles dealers
Ahmed Oteify capital markets analyst reported that anticipation reduce the price of the pound was the biggest mind-boggling to customers during the month of August and the rather since the announcement of a tentative deal to borrow from the International Monetary Fund.
He added, "With traders waiting to move the exchange rate, especially with a hint the central bank to pursue exchange rate policy more flexible .. Raina frequent session over the three weeks of the month .. every Tuesday with tender League Central Bank appointment Solutions is stepping up the market in the beginning of the meeting Tfowla the possibility of moving the price then install the central announce the price the market is shifting to the downside. "
He hinted the central bank to adopt a more flexible exchange rate policies, which is interpreted by the market to cut the price of the pound against the dollar, said Bank Governor Tarek Amer, he was waiting for the right time for this procedure.
Ehab Saeed stressed that the postponement of reducing the pound and the absence of economic stimuli introduced into the market at the stage of sale in order to reap profits and followed by transverse movement.
The resulting stability of the official price of the pound - according to Said - to the escalation of the gap between the two rates of the official and the black market. And increased it from foreign investors who preferred to be present outside the market until it became clear vision and the availability of dollar warned.
Hot money
Said Dr. Huda Minshawi, managing director of trading securities that the market has received pressure during the month of hot money made by the institutions to speculation next to the exchange of roles between the Egyptian and foreign institutions between the buying and selling traffic.
The term hot money given to the money that moves very quickly from an investment to another worldwide proactive higher-yielding short-term investment opportunities.
She said the market confirmed the break important support at 8200 points, with the absence of news on stimulating climb.
She added that the market tended to the next support zone between 8100 and 8130 points, which is important not to break it down because of it caused by relegation to the lowest price levels.
It Minshawi "The market is moving in a channel - scale - between 10530 points made in the February 4, 2015, and 5508 points achieved in the January 17, 2016".
Categories of customers
The monthly report of the Stock Exchange, said that the Egyptians trading accounted for 79.59% of the total market turnover while foreign Gararab the ratio of 14.16% and Arabs to 6.25% after excluding deals.
The stock market and accounted for 75.52% of the total value of stocks traded inside the cabin. While bond trading accounted for about 24.48% in August in.
And it recorded the transactions Non-Arab foreign net sale value of 626.43 million, and Arab investors net purchases worth 165.99 million pounds this month after excluding deals.
It should be noted that net foreign transactions of non-Arab recorded net buying of $ 04.09.20 million pounds since the beginning of the year, while the Arabs record net buying of 1.162 billion pounds during the same period, after excluding deals.
The report said the acquisition of enterprises to 54.35% of the value traded, while the remaining transactions for the individuals increased by 45.65% and institutions recorded net sale value of 59.99 million pounds, after excluding deals.
In the bond market trading on the total value of the bonds amounted to about 4.942 billion pounds this Alchehrkma The total volume of transactions on the bonds for this month almost 4.840 thousand bonds.
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