Cairo – Mubasher: The Egyptian Exchange is likely to give a positive performance on Tuesday motivated by the “Stable Outlook” that Fitch assigned to Egypt’s economy, said analysts.
The International credit rating agency has affirmed Egypt's Long-term foreign and local currency Issuer Default Ratings (IDR) at “B” with a stable outlook.
Fitch’s stable outlook may create a positive atmosphere for Cairo bourse today that could push the main index forward to higher levels and end the sideways trend, said Ahmed Abdel-Hamid, Managing Director of Watheeqa Securities.
Abdel-Hamid expected liquidity levels to edge up and investors to just start throwing their caution to the wind.
Ayman Fouda, head of capital market committee at the African Economic Council, said EGX indices likely make sideways-to-slightly-upwardly movement in the the last session this month.
The benchmark is lying near the support mark of 7,450 points where buyers, whom made use of positive data for blue-chip stocks, can build new positions, Fouda indicated, adding that the benchmark is having resistance at the 7,490 – 7,520 area and support at the 7,425 – 7,380 area.
On the other side, Pharos Research gave a “bearish view” on the short term due to investors' poor buying appetite at the current levels as well as CIB’s weak performance over the previous sessions.
“Provided consistency, a potential violation to our predefined key support on the short-term at around 7,300 remains to be a highly probable scenario. Should this scenario manifest itself, then this would signal the beginning of a downward correction within the current intact medium-term uptrend of the market,” Pharos said.
Earlier, the research firm said the bearish outlook for Cairo bourse will be maintained as long as EGX30 settles below the resistance mark of 7,700 points.
Translated by Ahmed Elsayed Ali
