Cairo – Mubasher: Indices on the Egyptian Exchange (EGX) will likely see a sideways movement during Wednesday’s and Thursday’s trading sessions, particularly after the benchmark EGX30 index closed below 12,800 points, analysts told Mubasher.
The EGX will likely extend its correctional sideways moved in the remaining sessions of the week, said Ayman Fouda, head of the Capital Market Committee at the African Economic Council.
The index will resume short-term resistance at 12,970 then 13,020 points, while support will likely be seen at 12,735 and 12,630 points, according to the analyst.
The small- and medium-sized stocks’ index will see resistance at 523, then 529 points, while support will be seen at 515 then 509 points, Fouda said.
The analyst advised traders and investors to make use of the decline by forming new stock positions in order to benefit from the upwards rebound once the correction period is over.
Meanwhile, Remon Nabil from the Egyptian Association of Technical Analysts said he expects an extended negative performance for EGX indices, with the exception of the transport sector, which continues to see short-term gains.
Nabil sees EGX support at 12,700 points and may extend the correction to as far as 12,300 points in next week’s trading sessions.
The EGX30 index concluded Tuesday down 1.08% or 139.61 points to the level of 12,789.52 points, ending a nine-session rising streak.
