By: Heba El-Kordy
Cairo – Mubasher: The Central Bank of Egypt’s (CBE) recent interest rate reduction is likely to have a limited impact on the Egyptian Exchange (EGX), analysts told Mubasher.
The bank's interest rate cut will push the EGX to boost trading volumes and lure further liquidity in the meantime, branch manager at Mubasher Financial Services Safwat Abdel Naeem said.
The benchmark EGX30 index is expected to test 17,870 points during the first week of April, he highlighted.
The EGX70 index is projected to test 895 and 1,000 points this month, Abdel Naeem indicated.
For his part, CEO of Osool ESB Securities Brokerage Saeed El-Feki said that the CBE’s decision could have a limited impact on this week’s trades as the EGX may remain stable after the bull run it maintained over the past period.
The EGX is likely to see slight profit-taking and investors may recreate new buying positions, El-Feki forecast.
The overall performance of the EGX is still positive in the medium and long term, he indicated.
On Thursday 29 March, the Monetary Policy Committee (MPC) of the CBE has decided to slash interest rates by 100 basis points or 1%.
The overnight deposit and lending rates stood at 16.75% and 17.75%, respectively, while the main open market rate was lowered to 17.25%.
Translated by: Mai Ezz El-Din
