By: Heba El-Kordy
Cairo – Mubasher: The Egyptian Exchange (EGX) is expected to start May 2018 in the green territory and then see a wave of profit-taking as blue-chip stocks hit record highs last month, analysts told Mubasher.
The benchmark EGX30 index is hovering around 18,500 points due to the upward trend seen by blue-chip stocks recently, mainly the heavyweight Commercial International Bank (CIB), branch manager of Osool ESB Securities Brokerage Saeed El-Feki said.
Blue chips are projected to see a wave of profit-taking, he added, pointing out that some liquidity will be added to stocks that witnessed accumulations.
The EGX30 index has support at 18,000 points, El-Feki indicated, projecting that the index would not break this level even during the anticipated profit-taking.
The EGX is likely to maintain the bull run in the medium- and long-term, he noted.
For his part, capital market expert Michael Mamdouh Naguib said that May’s first trading session is likely to be strong after calm trades at the end of April due to workers’ day holiday.
The EGX30 may test 18,500 points as a new level on today’s session, Naguib added, noting that this level requires higher trade volume.
CIB will rebound from EGP 92 to maintain the upward trend during May, he highlighted.
The index has support at 18,080 and 18,000 points, he said, pointing out that the index would not see profit-taking before hitting resistance at 18,500 points.
Translated by: Mai Ezz El-Din
