By: Heba El-Kordy
Cairo – Mubasher: The Egyptian Exchange (EGX) is expected to maintain hitting record highs, despite weak liquidity amid the Christmas holidays, analysts told Mubasher.
The benchmark EGX30 index is hovering near its highest level, in spite of the notable lack of liquidity, market analyst at Pioneers Holding Mohamed Gaballah said.
The absence of foreign investors in trades due to Christmas holiday has lowered liquidity until the end of 2017, in addition to the intensive buying on blue chips, except for the Commercial International Bank’s (CIB) stock, Gaballah added.
Moreover, Michael Armia, head of technical analysis department at Arabeya Online, said that the EGX30 index is still moving upwardly and is expected to hit touch new significant record by the end of 2017 despite low transactions.
The index is still seeing a bullish trend on the short-, medium-, and long-term, Armia added, pointing out that it has resistance at 14,927 points and may test 15,100 and 15,330 points.
The index has main support at 14,937 points, and has a downside potential at 14,800 and 14,680 points, he highlighted.
The EGX70 index is still rising, despite falling on Tuesday’s session, targeting 885 points, he noted.
Furthermore, Ayman Fouda, head of capital market committee at the African Economic Council, expected the continuous purchasing power to maintain the EGX30 index’s upward trend to test 15,000 points and target 15,100 points over the last three sessions of the current year.
The EGX 70 index is forecast to carry on the positive performance and see short-term profit-taking, Fouda said, adding that the index has short-term resistance at 835 and 850 points and has support at 818 and 811 points.
The analyst recommended investors to hold on their stocks, in line with quick trading to protect profits and to get ready to create partial buying positions on cumulative stocks, adding that quick traders should trade on active stocks through margin trading.
Translated by: Mai Ezz El-Din
