Cairo – Mubasher: The Egyptian Exchange (EGX) is likely to be hammered by shock outcome after Britons have voted to leave the European Union (Brexit), said analysts.
Cairo bourse is forecast to see a broad selling wave closer to “tsunami ” as traders will share tumultuous sentiments following the unexpected Brexit that has come as a massive shock to the global economy and decision-makers, said Ibrahim Al-Nimr, head of technical analysis at Naeem Holding.
“Global depository receipts will be negatively affected as a result that UK pound has been plunging against US dollar”, Al-Nimr added.
Likewise, market analyst Mohamed Gaballah said EGX, like other stock markets, is seen battered by Brexit’s seismic shock, thus advising investors to ponder their steps before any selling or buying decision amid this foggy scene.
“It is illogical to chew over EGX support areas under the current turbulent circumstances”, Gaballah indicated. However, the first support area is at the mark of 6,800 points and the second one stands at the robust level of 6,500 points.
Over the last week, the Egyptian Stock Exchange saw a negative performance, affected by the Central Bank of Egypt’s decision to raise key interest rates by 100 points.
