Cairo – Mubasher: The Egyptian Exchange’s benchmark is expected to target the resistance levels of 7,500 – 7,700 points on Sunday, said analysts, adding that equities may witness a correction movement during the week.
The main gauge closed Thursday’s session 257 points, or 3.56% higher to 7,485.69 points.
The benchmark is likely to target the resistance level of 7,350 points and then jump to 7,650 points today, if the barrier of 7,350 is broken, said Mona Hassan, chief technical analyst at Mubasher. However,, moving below the resistance level will probably drive the index to see a correction movement toward the support levels of 7,430 points and 7,240 points, the chief analyst added.
The small and mid-cap EGX70 is likely to move near the previous resistance level of 360 points. In case that EGX70 moves higher than the former resistance level, it will likely keep going up to the level of 370, said Ehab Said, head of technical research at Osool Securities Brokerage.
Ziad Sheta, client accounts manager at Grand Capital, said that the decision of the central bank Thursday to raise interest rates would leave a short-term effect on all investors’ sentiment, the small-cap ones in particular.
But it will not, however, push investors to shift their liquidity from equity market into bank deposits, he noted.
