Cairo-Mubasher: The Egyptian Exchange (EGX) is expected to continue its downward trend on Thursday despite the positive local news, technical analysts told Mubasher.
Ayman Fouda, head of capital market committee at the African Economic Council, said the bourse does not have enough momentum currently to stage a comeback.
He added that the market was pressured by selloffs on leading stocks such as Commercial International Bank (CIB) which plunged 8.69%.
The exchange has not reacted to the positive news about the visit of China’s President to Egypt and agreement on a package of some economic projects, the expert said.
Fouda said EGX30 is expected to move in a downward trend in the short term, testing resistance at 5940 and then6060 points and support at 5630 and then 5524 .
EGX70 is moving sideways with a downward bias in the short term, testing resistance at 348 and then 354 and support at 338 and then 334 points.
Fouda advised investors to watch leading stocks especially CIB, as well as institutions’ shift to buy while holding strong stocks.
Mona Hassan, chief technical analyst at MubasherTrade, said EGX30 steeply declined on Wednesday to close at5776 . She expected the index to continue falling to hit the5526 level.
Translated by Abdul Maguid Aboshahla
