Egypt - Negotiations between the International Monetary Fund (IMF) and the Egyptian Government witnessed great progress after announcing an agreement at the staff level on the components of the programme, which helped the stock market to end Monday’s trading session in the green zone.

Daily News Egypt learned that last Saturday’s meeting between the Egyptian Government delegation and the IMF witnessed reaching an agreement on the components of the reform programme, but so far, the exact amount of the loan has not been agreed upon.

Sources added that the Egyptian Government is seeking to reach a final agreement on the loan this week, before the start of the economic conference next week.

Mohamed Hassan, Managing Director of Blom Egypt Investments, said that reaching an IMF agreement would stimulate foreign investment and give confidence to investors.

He explained that the agreement means an increase in the value of the dollar against the Egyptian pound, which is reflected in the decrease in the value of shares and gives them more attractiveness to investors, especially foreigners, especially after the stability of the exchange rate.

He stressed that it will reflect positively on the Egyptian financial market, noting that the important support area for the main index is at 9,650 points, and the most important resistance is at 10,250 points, pointing out that breaking the support up will bring the index to the level of 10,600 points.

He advised investors to trade quickly and wait for confirmation of breaking the support to form new positions, in anticipation of any corrective movement.

The benchmark index EGX30 closed on Monday, with an increase of 1.02% to reach 10,151 points, and EGX50 EWI rose by 1.29% to 1,930 points.

EGX70 EWI recorded an increase of 0.58% to reach 2,199 points, EGX30 capped achieved a rise of 1.34% to 12,490 points, and the broader EGX100 grew by 0.80% to 3,150 points.

The market recorded trading values ​​of EGP 1.215bn through the circulation of 483 million shares, by implementing 45,000 buying and selling operations, after trading was done on the shares of 202 listed companies, of which 80 shares rose, and the prices of 41 securities declined, and the prices of 81 shares did not change. The market capitalization of the listed shares reached EGP 703.4bn.

The net transactions of Egyptians alone tended to buy, recording EGP 305m, with a 74.71% acquisition of the shares, while the net transactions of foreigners and Arabs tended to sell, recording EGP 292.8m and EGP 12.4m, respectively, with acquisition rates of 14.89% and 10.41% respectively.

Individuals carried out 81.83% of the transactions, heading towards buying, with the exception of Arab individuals, who recorded a net sale of EGP 3.5m, and institutions captured 18.16% of the trades, heading towards selling, with the exception of Egyptian institutions, who recorded a net purchase of EGP 249.2m, while foreign and Arab institutions recorded a net sale at a value of EGP 293.4m, EGP 8.88m, respectively.

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