Cairo – Mubasher: The Egyptian Exchange (EGX) is likely to move sideways on the short term at the first trading session this week, according to analysts who expected the Egyptian pound’s devaluation to break records.
The benchmark index EGX30 is currently facing the 7,770-7,700 support zone, said MubasherTrade Research, assuring that the index “will likely hinder the current retreat”.
Ayman Fouda, head of capital market committee at the African Economic Council, said the benchmark is likely to keep moving sideways between the support of 7,880 and the resistance of 8,120 until the central bank officially adopt the devaluation policy.
Accordingly, investors are likely to avoid taking risks and to wait for positive data that pave the way for building positions on the stocks that have reached attractive levels ahead of the third quarter’s financial disclosures, the analyst added.
On last Thursday, Cairo bourse closed the session in the red zone as the EGX30 lost 0.34%, or 26.8 points, to stand at 7,881.1 points.
