Cairo – Mubasher: The Egyptian Exchange’s (EGX) trend is currently bound by the benchmark index testing the resistance at 12,575 points to confirm an extended rise, analysts told Mubasher.
Passing 12,575 points is a ticket to extending the EGX30’s gains and confirming the rising trend on the short, medium and long terms, commented the head of research and technical analysis at EGS Broker Hoda El-Menshawy.
She added that the index was still moving in a narrow channel ranging between 10,265 and 14,200 points on the short-term.
Should the benchmark index fail to surpass 12,575 and close above it, it will begin a correction.
Meanwhile, Ayman Fouda, head of capital market committee at the African Economic Council, said he expects the EGX to open Wednesday at a slight decline until new buying momentum arises.
The EGX30 index will see resistance at 12,826, 12,950 and 13,090 points, respectively, while support will be seen at 12,550 then 12,400 points, he added.
The EGX30 sharply dropped on Tuesday, falling 1.96% or 253.58 points and closing at 12,672.49 points, following a collective decline of its sectors amid strong pressure from foreign investors. Market capitalisation was down EGP 7.88 billion.
