Cairo – Mubasher: The Egyptian Exchange (EGX) is forecast to extend the downturn during Monday’s trading session amid a powerful selling wave, said analysts.
Ayman Fouda, head of capital market committee at the African Economic Council, expected EGX to give a negative performance on Monday until new momentums prompt institutions and investment funds to re-pump liquidity into the equity market.
Yesterday, the main index saw a steep decline and closed at the mark of 7,373 points amid medium trading volume as a result of of the current correction, said Mona Hassan, Chief technical analyst at Mubasher. She added that the bourse is likely to reach appealing support levels to buying powers and to finish the session at 7,373 points, the chief analyst added.
Ahmed Shehata, Head of Technical Analysis at Al Noran Securities & Brokerage, sees the stock market kicking off in the red territory during the coming sessions with weaker trading volumes.
Pharos Research pointed out that the Egyptian Exchange is to witness “a point of no return”, should the benchmark break the 665.0-7,250 area on the short term.
“A violation to the latter levels would signal a shift on the short-term trend of the market from flat to down, and would pave the way for a sizable downward correction within the current medium-term uptrend”, said the research firm.
Translated by Ahmed El-Sayed Ali
