By: Heba El-Kordy
Cairo – Mubasher: The benchmark EGX30 index rose to its highest level in history on Monday at 14,176 points.
By 2:04 pm Cairo time, the EGX30 added 1.08% or 152.14 points.
The main index is likely to carry on the upward wave after breaking resistance above 14,100 points to target 15,000 and 16,100 points, analysts told Mubasher.
Some analysts are expecting the index to see a declining rebound at 14,250 points.
The impact of the Egyptian pound flotation
The Egyptian Exchange (EGX) will see new historic targets over the coming period if the EGX30 index broke resistance above 14,122 points, capital market expert Toni Kamal told Mubasher.
The EGX30 index is targeting 16,100 points during the fourth quarter of 2017 and January 2018, Kamal highlighted.
He indicated that surpassing resistance represents the recovery of the EGX.
The expert noted that the EGX will witness an active period over the next two months, expecting strong purchases on blue chips such as Talaat Moustafa Group Holding, EFG Hermes, Ezz Steel, and Global Telecom.
New historic levels
Saeed El-Feki, CEO of Osool ESB Securities Brokerage, said that the EGX30 may see the level of 14,500 points this week to hit new higher levels at 15,000 points by the end of 2017.
The index will maintain its positive performance over the coming period, El-Feki indicated.
The analyst pointed out that the main index may target 18,000 points in 2018 after the anticipated government initial public offering (IPO).
Anticipated rebound
Moreover, technical analyst at Jazira Securities Brokerage Ahmed Thabet said that the EGX30 index may target 14,170 and 14,200 points to see a declining rebound at 13,800 points.
The level of 13,800 points will direct the index over the forthcoming period, Thabet highlighted.
The index will be able to see 14,600 points in case it broke above 14,250 points, he explained.
At the level of blue chips, the analyst noted that EGF Hermes, Heliopolis Company for Housing and Development, and Ezz Steel have resistance at EGP 24, EGP 31.15, and EGP 18, respectively.
Translated by: Mai Ezz El-Din
