Cairo – Mubasher: Trading on the Egyptian Stock Exchange is likely to be surrounded by caution following a five-session losing streak, EGX30 significant losses, and low liquidity.
Hanan Ramses, CEO of Cairo Securities, said Sunday’s trading session is likely to urge caution among investors until market indicators suggest whether the benchmark will keep moving upwardly or otherwise.
Meanwhile, the small and mid-cap index EGX70 is expected to boom on Sunday and to give space for building up purchasing position, Hanan added.
Ehab Said, head of technical research at Mubasher, indicated that the main index over the first week of May failed to keep running bullish and to break the 8,000 resistance area, namely the mark of 7,993 points, which will not encourage investor to cast caution to the winds in Sunday’s trading session.
The main gauge, he continued, is likely to refocus on the 7750-7700 area, while the small and mid-cap is to test the resistance mark of 375 points.
The Egyptian Exchange finished Thursday’s trading session in the green zone on the purchases of Arab and foreign investors after the Ministry of finance postponed capital gains tax.
The benchmark gained 105.05 points, or 1.41%, to level up at 7,547.49 points.
Translated by Ahmed El-Sayed Ali
