Cairo – Mubasher: The Egyptian Exchange is likely to move sideways on Wednesday after the benchmark slipped to 7,331 points during the mid-week trading session.
The main index ended Tuesday below the key support level of 7,360, said Mona Hassan, chief technical analyst at Mubasher, expecting EGX30 to test the support area ranging between 7,000 and 7,100.
Meanwhile, Ayman Fouda, head of capital market committee at the African Economic Council, said the main index is possibly to make a flat movement and likely to retest the area ranging from 7,360 to 7,420. He defined support levels at 7,275 points and then at 7,230 points.
The small and mid-cap index, he continued, will target the area ranging from 368 pointsto 372 points, while having support at the mark of 362 points and then 357 points.
Khaled Nagah, head of trading at Mega Investment, said the benchmark has started a downward correction movement as a natural result of the latest remarkable upturn. He added that the current profit-taking will temporarily hinder the positive performance of the main gauge, pointing out that the downtrend is coupled by low trading volume.
Unlike, EGX70 has been rising lately at a slower pace than EGX30, which presently gives the small and mid-cap index a momentum for moving up amid the existence of investment opportunities, Nagah indicated.
