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DOMT Betweenincrease "EPS" and increase in volumeOn a specialized economic level, after reviewing the financial statements for the first quarter of the stock, the increase in the number of shares was marginal (in the millions) and the increase in earnings per share was also by a fraction of a penny. However, on a technical analysis level of the volume, a state of stability and exchange of shares in large quantities ("accumulation") is evident without any increase in the stock price. In other words, the chart shows us that there are accumulation operations for a full session without including holidays, especially after the last cash dividend distribution from the stock. This operation makes us wait for a strong upward movement for the stock to return to the levels of 14 Egyptian pounds during June. The stock will recover, and it is a great opportunity to achieve no less than 20% on investing in this stock. This is not advice, but an analysis. I believe that the second quarter results will be higher because the month of Ramadan, which was between March and April, disrupts a large part of the revenue from Suntech Dmetty's sales. We will notice high semi-annual statements at a high rate. Please note that this is a direct translation and does not include any additional information or interpretations
EGX:DOMTLong
by atuumra
EGX30 : between relative weight and geopolitical tensionsThe EGX30 index, a benchmark for the Egyptian stock market, faces a critical challenge: the concentration of its weight among a few large companies. As of May 28, 2024, the top three constituents – Commercial International Bank (CIB), Talaat Moustafa Group, and Sweden Electronics – account for a staggering 50% of the index's weight. This excessive concentration raises serious concerns about the index's overall stability and its ability to accurately reflect the broader market performance. Addressing Weight Imbalance: A Call for Action To address this pressing weight concentration issue, the Egyptian government must take proactive measures to encourage diversification among index constituents. This could involve supporting mergers and acquisitions among smaller companies, actively promoting the listing of new companies, and potentially adjusting the index methodology to reduce the outsized influence of individual stocks. Political Tensions: A Lingering Shadow Political tensions in Egypt continue to cast a long shadow over the stock market, creating an environment of uncertainty and risk. The lack of a clear resolution to these tensions weighs heavily on investor sentiment, hindering long-term investment decisions and dampening market growth prospects. Technical Analysis: Gauging Market Direction From a technical analysis perspective, the EGX30 index is currently facing resistance at the 27,650 level and support at the 24,235 level. This suggests that the index is likely to experience horizontal movement in the near term, with potential for breakouts in either direction depending on the resolution of the underlying factors affecting the market.
EGX:EGX30
by atuumra
6
Market Analysis: XAUUSD and EGX30 Performance Market Analysis: XAUUSD and EGX30 Performance amid Liquidity Concerns, Corridor Rate Speculations, and Geopolitical Influences Recent market observations indicate that the XAUUSD (Gold/USD) is experiencing a significant upward trend, potentially reaching new record highs. Conversely, the EGX30 index, whether evaluated in Egyptian Pounds (EGP) or USD, is currently facing substantial liquidity shortages. This disparity highlights critical trends in the local financial markets, influenced by both domestic and international factors. Central Bank Policies and Corridor Rate Speculations: Circulating rumors suggest that the central bank might choose to maintain the current corridor rate or possibly reduce it. Such monetary policies could have notable implications for the economy. Specifically, a reduction in the corridor rate may result in a leakage of money supply from the banking system. This excess liquidity could subsequently flow into alternative investment avenues such as the local physical gold market or the EGX30 index. Geopolitical Influences: Globally, geopolitical tensions have been on the rise, including ongoing conflicts in the Middle East, trade disputes between major economies like the US and China, and political instability in various regions. These issues contribute to the uncertainty in the global financial markets, often driving investors towards safe-haven assets like gold. Additionally, the fluctuations in oil prices due to geopolitical instability directly affect economies like Egypt, where energy imports constitute a significant part of national expenditure. Historical Example: Post-2008 Financial Crisis Context: After the 2008 financial crisis, central banks worldwide, including the Federal Reserve in the United States, implemented significant monetary easing policies. This period saw historically low interest rates and large-scale asset purchases (quantitative easing, or QE). Parallel Events 1. Surge in Gold Prices: - The uncertainty in global markets and concerns about fiat currencies led to a surge in gold prices. Investors flocked to gold as a safe-haven asset amid fears of inflation and currency devaluation. - By 2011, gold prices soared to record levels above $1,900 per ounce, reflecting a trend of increasing demand for physical gold as a hedge against economic instability and geopolitical risk. 2. Equity Market Performance: - In emerging markets, including Egypt, stock indices like the EGX30 experienced variable performance. The liquidity injected into the financial system often bypassed stock markets in these regions, leading to periods of underperformance. - The EGX30 index, for instance, faced challenges during certain periods post-2008 due to political instability, economic reforms, and regional geopolitical tensions, which affected investor confidence and liquidity flows into the market. Policy Decisions: - Central Bank Actions: - Central banks worldwide, faced with the dual mandate of stimulating growth and controlling inflation, kept interest rates low for extended periods. The Federal Reserve, for example, maintained near-zero interest rates and continued its bond-buying program until 2014. - In Egypt, the Central Bank of Egypt (CBE) also made critical rate decisions, including rate cuts aimed at stimulating economic activity, which had implications for liquidity distribution across different asset classes. Impact on Markets: - **Gold Market:** - The policies led to increased money supply in the global economy, which, combined with economic and geopolitical uncertainty, bolstered the demand for gold. The gold market thrived as investors sought refuge from volatile stock markets and potential inflationary pressures. - **Stock Market (EGX30):** - The EGX30 and similar indices in emerging markets struggled with liquidity issues as investors prioritized safer or higher-yielding assets abroad or in commodities like gold. - Any central bank decision to adjust interest rates would have a direct impact on the flow of money, often leading to short-term capital flight from equities when rates were cut, as investors searched for higher returns or more stable investments. **Conclusion:** The post-2008 scenario illustrates how central bank policies, particularly regarding interest rates, can lead to a reallocation of assets from stock markets to commodities like gold. The performance of the EGX30 during this period was influenced by global monetary trends, domestic economic conditions, and significant geopolitical events. This interconnectedness of liquidity, investor behavior, market performance, and geopolitical dynamics underscores the complex nature of financial markets.
EGX:EGX30
by ICHIMOKUontheNILE
Breaking News: Markets Shocked by Lack of Shock in EGX30 IndexOn a daily time frame, the EGX30 index remains bearish with low volume and value being evident. The average value per hour is around 450 million. There is a notable difference between the traditional candlestick chart and the Heikin Ashi chart, primarily due to the specific calculation method of Heikin Ashi (Holcomb divided by 4). Looking closer at the one-hour time frame, the index shows positivity on both Ichimoku and Bollinger Bands. However, it's essential not to be overly optimistic as the EGX30 index has not yet surpassed the head and shoulders neckline at 25,192. If you need further analysis or have any specific questions, feel free to ask!
EGX:EGX30
by ICHIMOKUontheNILE
1
SWEETNESS OF THE SOUL BEFORE THE DEEP DIVE TO wave cTomorrow's session titled "Sweetness of the Soul Before the Deep Dive to End the Correction Wave (c)," we've set our target projections between 28,900 and 30,200. Based on the Ichimoku Kinko Hyo analysis, current trends for the EGX30 do not show positive signals. The index is submerged deep within the Kumo, with the Kijun Sen exerting downward pressure, making it difficult to exit the cloud. This is further supported by the downward trajectory of the Chikou Span. Additionally, the EGX30's failure to sustain its upward momentum coincides with the conclusion of Elliott Wave (b) and the commencement of Wave (c). For a more comprehensive technical analysis that goes beyond the basics to include Bollinger Bands, Elliott Waves, and more, please view the detailed video provided. #traders4traders ***This channel is intended for educational purposes only and should not be construed as an investment proposal. Disclaimer: The content provided is for Educational purposes only. It should not be interpreted as legal, tax, investment, financial, or any other form of advice. Investing in stocks carries inherent risks and may lead to potential losses, including the loss of principal. It's important for investors to recognize that past performance does not guarantee future returns, and market fluctuations can impact investment value. Stocks discussed here are not synonymous with, nor should they be seen as a replacement for time deposits or similar saving instruments. Investing in securities of smaller companies may involve higher risks compared to larger, more established firms, possibly resulting in substantial capital losses. Decisions to buy, sell, hold or trade in securities, commodities and other investments involve risk and are best made based on the advice of qualified financial professionals. The practice of "Day Trading" involves particularly high risks and can cause you to lose substantial sums of money. Before undertaking any trading program, you should consult a qualified financial professional. Please consider carefully whether such trading is suitable for you in light of your financial condition and ability to bear financial risks. Under no circumstances shall I be liable for any loss or damage you or anyone else incurs as a result of any trading or investment activity that you or anyone else engages in based on any information or material you receive through TradingView
EGX:EGX30
by ICHIMOKUontheNILE