By: Heba El-Kordy
Cairo – Mubasher: The Central Bank of Egypt’s (CBE) interest-rate decision is likely to affect the performance of the Egyptian Exchange (EGX) after seeing sideways trend over the past period.
The benchmark EGX30 index is expected to test near support levels and break 14,600 points to target 14,000 points as a result of the CBE’s decision, analysts told Mubasher.
Last Thursday, the CBE’s Monetary Policy Committee (MPC) decided in its meeting to keep current key interest rates unchanged in March at 16.75%, and 17.75% for overnight deposit rate and overnight lending rate, respectively.
The EGX30 index is likely to see a sideways trend and move between 14,600 and 15,200 points, branch manager of Osool ESB Securities Brokerage Saeed El-Feki said.
Following holding the interest rates, the benchmark would retest 14,600 points and target support at 14,400 points, El-Feki added.
New purchasing powers could be recreated at the main support levels of 14,000 points, he indicated.
The EGX closed the fourth week of March 0.79% down at 14,665 points, losing 117 points, amid the anticipation of the MPC’s meeting.
For his part, Ayman Fouda, head of the capital market committee at the African Economic Council, projected the EGX30 index to retest near support levels and move downwardly in the short and long terms following the CBE’s decision.
The EGX30 index has resistance at 14,750 and 14,810 points and has support at 14,470 and 14,380 points, Fouda highlighted.
Moreover, the small- and mid-cap EGX70 index has short-term resistance at 688 and 695 points, while it has support at 677 and 669 points, Fouda indicated.
