Cairo – Mubasher: The Egyptian exchange is expected to initiate mid-week trading session on a lower note, but to rise in the second half on the comeback of selective purchasing powers, said analysts.
Possible early losses mainly return back to price differentials in Monday’s closing session, said Ayman Fouda, head of capital market committee at the African Economic Council, adding that the second half of the session is likely to see, however, collective buying appetite on gilt-edging stocks.
Currently, EGX30 is facing resistance at the 7680-7750 area, while having support at the 7850-7500 area, the analyst indicated.
Ibrahim Al-Nimr, head of technical analysis at Naeem Holding, clarified that the benchmark neared the resistance area of 7,700 points and will test, if breaking the former mark, the next resistance level of 8,000 points.
In case the main index is crippled to move above the 7,700 area, it will be drifted lower to 7,275 points.
Pharos Research pointed out that buyers have been exerting their best to keep prices steady, yet all their trials are taken place on “weakening momentum”.
“If buyers fail to keep prices at current levels, the next decline will be much steeper”, said the firm, adding “If we break below the support that lies at 665.0 on the Hermes Last Index, the decline will be much harsher than what should have been expected”.
Due to atmospheres implying higher risks, investors are still advised to “reduce their exposure in the market and wait on the sidelines, until the market finishes its current struggle”, the firm concluded in the pre-opening daily report.
Translated by Ahmed El-Sayed Ali
