Cairo – Mubasher: The Egyptian Exchange’s main index (EGX30) is expected to keep targeting 8,500 points during 14-18 August with a positive outlook in general, analysts told Mubasher.  

Ehab El-Said, head of technical research at Osoul for Securities, said the EGX30 is forecast to move near the resistance area ranging from 8400 points to 8500b points this week.

If backed by IMF’s final decision over the $12 billion three-year loan and a possible devaluation of the Egyptian, equities will likely record further gains, El-Said added.

On last Thursday, the total market value stood at EGP 418.64 billion, after the government reached a staff-level agreement with IMF to obtain the loan.  

Likewise, market analyst Hesham Hassan said “the IMF initial accord had left a positive impact on traders’ sentiments", which are likely to develop if they are coupled with the Egyptian pound devalution.

At the current, the main index is having support at the 8300-8000 area and facing resistance at the mark of 8,600 points, Hassan noted.

On the short term, the outlook is positive, even if a natural process of profit taking occurs as it will probably be a chance for building buying positions, the analyst added.

“Nothing will negatively affect traders’ sentiments as long as the EGX30 is holding above 8000 points”, Hassan concluded.