By: Heba El-Kordy
Cairo – Mubasher: The Egyptian Exchange (EGX) is expected to maintain seeing a wave of profit-taking, awaiting for new market-boosting catalysts and purchasing powers to push blue chips higher.
The benchmark EGX30 index has resistance at 15,400 points and support at 15,180 points, economist and market analyst Safaa Fares told Mubasher.
The EGX30 index has risen again on the back of Egyptian and foreign institutional purchasing powers, Fares highlighted.
The EGX70 index has resistance at 850 points and an upside potential at 870 points, while it has support at 835 points and a downside potential at 826 points, she added.
Given that the EGX closed Monday’s trading session in red territory, pressured by local selling as the EGX30 index shed 0.63% or 96.68 points to 15,243.33 points.
Additionally, head of financial research at El Marwa for Securities and Brokerage Mohamed El-Naggar said that the EGX is likely to see a correction wave in the short and medium terms.
Not only will the EGX’s main indices see a wave of profit-taking but also the stocks, El-Naggar noted.
Furthermore, Ayman Fouda, head of capital market committee at the African Economic Council, said that the most of the blue chips were pressured by a partial profit-taking on Monday, in line with the absence of positive catalysts which impact investors’ decisions.
The EGX is projected to carry on the sideways trend on Tuesday, on which active stocks may see a weak volatile performance for quick speculations, Fouda added.
The EGX30 index has a short-term resistance at 15,330 and 15,470 points and has support at 15,150 and 15,080 points, he indicated, pointing out that the EGX70 index has a short-term resistance at 844 and 850 points and support at 832 and 826 points
Translated by: Mai Ezz El-Din
