Cairo – Mubasher: The Egyptian Exchange’s benchmark is forecast to move sideways amid relatively higher market liquidity ratios on Monday, said analysts.
Ahmed Thabet, head of technical analysis at Tycoon Brokerage, said the main index is likely to make flat movements at the 7,350 - 7,600 area. In addition, the financial and real estate sectors, led by EFG-Hermes and Talaat Moustafa, may give a positive performance and see higher liquidity ratios.
The small and mid-cap index EGX70, Thabet continued, is to target the mark of 380 points, stimulated by its stocks on which the trading activity was not buzzing in the previous days.
Concerning liquidity ratio, Thabet added, trading values are to relatively boom today and likely to register an average of EGP450 million compared with EGP372 million on Sunday.
Mona Hassan, Chief technical analyst at Mubasher, expected EGX30 to move sideways between 7,280 points and 7,680 points, advising investors of quick trading until either mark is broken.
The Chief analyst added that EGX30 resistance is at 7680 points, 8000 points, and then 8200 points, while having support at 7280 points, 7100 points and then 6,850 points.
In spite the previous two straight rises, Pharos Research Firm described this upturn as “hollow recovery” due to trading volume in particular that shrank with along with relatively poor market breadth, according to its daily report.
“Current interim resistance emerges at around 706.0, (7,700 on the EGX30 Index). We don’t expect a consistent intraday breach to the latter levels. That is why reducing exposure in case of a retest to such levels remains to be our tactic of choice”, the firm said.
Yesterday, EGX indices collectively finished Sunday’s trading session on a positive note, registering the second green closing in a row thanks to foreign purchases.
The benchmark EGX30 rose by 0.32%, or 24.21 points, to 7,562.23 points.
Translated by Ahmed El-Sayed Ali
