Cairo – Mubasher: The Egyptian Exchange (EGX) is set to continue its rise towards the level of 12,000 points, analysts told Mubasher, adding that 11,574 points is a central resistance level and passing it would ensure extended gains in the coming period.
Foreign institutions resumed intensive buying on Wednesday, allowing the benchmark EGX30 to wipe out its earlier losses, said Mohamed AbdelHakim, board member at Masters Securities Brokerage.
This also allowed several leading stocks to see a positive performance, he added.
Foreign buying is justified by the decline of the EGP against the USD, which has acted as a stimulant and offered investment opportunities in Egyptian stocks, the analyst commented.
He noted that buying is particularly satisfactory to foreigners when comparing stock prices before and after the floatation in EGP against the USD.
The EGX30 index is expected to continue its positive performance, with a target at 12,000 back by foreign buying, AbdelHakim stated.
Meanwhile, Hoda El-Menshawy from EGS Brokers, commented that should the EGX30 break above the second resistance level of 11,535 points, it will confirm its rise today.
