Cairo – Mubasher: The Egyptian Exchange (EGX) is forecast to see more sideways movement along with minor declines during the week, analysts told Mubasher.
A sideways-to-declining trend is expected on the EGX this week as the market takes in the negative effects that have hit its macroeconomy and the geopolitical updates and tensions, said Ayman Fouda, head of capital market committee at the African Economic Council.
The benchmark EGX30 will see short-term resistance at 14,300 then at 14,442, whereas support is expected at 14,100 and 13,960, the analyst said.
Meanwhile, the small and medium enterprises’ EGX70 index will see short-term resistance at 773 and 777, whereas support will be seen at 765 and 758 points, he added.
The analyst advised investors and traders to closely watch stocks and to consider quick trades between support and resistance levels for stocks seeing a jittery sideways performance.
On the same note, Shahd Raafat from Mubasher Financial Services (MFS) commented that “the index was hovering around the minor support 14,300 with relatively dry volume.”
“In case the stock could not sustain it, further decline towards 14,190 will probably take place. On the bigger picture, the index will eventually test the upward trend line that started in October,” she added.
Meanwhile, Saeed Al Feky, branch manager at Osool Securities, noted that it was natural for the Egyptian bourse to see profit-taking last week after reaching a record high of 14,600 points.
Ongoing geopolitical events, particularly US President Donald Trump’s acknowledgment of Jerusalem as Israel’s capital, have increased profit-taking on the EGX and broke major support at 14,360 points.
The benchmark index will likely rebound to 14,360 points once more, Al Feky said, indicating that if the index holds above this level, profit-taking will come to an end along with the impact of the geopolitical tensions, while the index will resume its rise and head for 14,800 points.
