Cairo – Mubasher: The Egyptian Exchange’s sharp fall is likely to be alleviated on Wednesday after the benchmark the lowest level in three months yesterday, said analysts.
The benchmark is facing, while having support at the 7,450-7,360 area, a key resistance area at 7,660-7,700 points, said Ayman Fouda, head of capital market committee at the African Economic Council, adding that investors should not be panicked or tend to randomly sell their stocks.
Moreover, credits and margins are not recommended amid the current steep decline, the analyst said. He also advised the long and mid-term investors to build up new position by making use of heavy stocks’ decline.
Pharos Research Firm expected some buying power to appear at the level of 7,200 points. However, the decline is still at early stages and likely to continue until the main gauge starts to target the 6,500 levels, it added.
Therefore, the firm advised traders not “to put too much weight on the 7,200 support level”, believing that “any rise from there will be more of a selling opportunity rather than a buying opportunity”.
