Cairo – Muabsher: The Egyptian Exchange (EGX) is expected to see a sideways performance during the week before the Eid Al Adha holiday amid the traders’ anticipation of liquidity levels, analysts told Mubasher.
Sameh Gharib, head of technical research at Roots Stock Brokerage House, said that the benchmark EGX30 index saw a consecutive decline during last week’s sessions, pressured by selling, closing down 1.47% at 12,926 points.
He added that the selling pressures continued driving blue chips lower as the benchmark EGX30 index broke over the support level of 13,100 and 12,950 points, stressing that the index is expected to see support at 12,600 points.
The small- and medium-sized enterprises EGX70 index is expected to test the level of 700 points and support at 667 points during this week’s sessions, he added.
Technical analyst at Mubasher International for Securities Shahd Raafat said that despite the positivity of the unsupported drop with higher traded volume, purchasing power is as weak as selling power.
It is not recommended to inaugurate new purchasing positions as the next support level of the benchmark EGX30 index will hover around 12,800 points, she continued.
On the other hand, the upturned low-traded volumes are to benefit from minimising positions or quick trades, she added.
The downturn trend is forecast to control the EGX’s trading before the Eid Al Adha holiday, chairman of the Capital Market Committee at the African Economic Community (AEC) Ayman Fouda said.
The benchmark EGX30 index is likely to see a short-term resistance at 13,050 and 13,120 points to target 13,260 points, and support at 12,800 and 12,730 points, Fouda added.
The EGX70 index is expected to have a short-term resistance at 695 and 707 points, and support at 682 and 677 points.
He recommended investors to keep trading on active stocks of selective buying.
