Cairo – Mubasher: The Egyptian Exchange’s (EGX) main index is projected to target the level of 3,900 points during the current week’s trading, as the bourse is likely to see profit taking, according to analysts.
“The benchmark index, EGX30, will target the resistance level of 6,900 points this week. A break above that level would push the index higher to target 7,250 points.” Ehab Saeed, head of technical analysis at Osool Securities Brokerage, told Mubasher.
“The small and mid-cap index EGX70, however, will target the resistance levels of 373 points and 385 points,” Saeed added.
Earlier on Thursday, the Central Bank of Egypt (CBE) raised its key interest rate by 50 basis points to boost the overnight deposit rate, overnight lending rate, and discount rate to 9.25%, 10.25% and 9.75%, respectively.
Saeed suggested that the interest rate raise will not have an impact on the bourse’s performance “at least over the medium term.”
Meanwhile, Sameh Gharib, head of technical research, Roots Securities Brokerage, said that the main index needs a strong buying force and bigger trading volumes to exceed the level of 6,900 points and reach 6,842 points in this week’s trading.
