Cairo – Mubasher: The Egyptian Exchange (EGX) is expected to carry over into the negative performance on Thursday following the hike in US interest rates.
The EGX is likely to maintain the sideways-to-declining trend today for the second trading session in a row, head of capital market committee at the African Economic Council Ayman Fouda told Mubasher.
Global tension resulted from the rise in US interest rates will impact the Egyptian bourse and push it into a short-term correction territory near support level at 13,074 points, Fouda indicated.
On Wednesday, the US Federal Reserve raised interest rates by 0.25% to a range between 2.25% to 2.5%, for the fourth times this year.
The benchmark EGX30 index may test support at 12,950 and 12,770 points if it continues seeing sell-offs by the end of the week, while it would test resistance at 13,215 and 13,350 points, he said.
As for the small- and mid-cap EGX70 index, he added it has resistance at 680 and 688 points and has support at 669 and 664 points.
Osama Naguib, head of technical analysis at Arab Finance Securities, said that trading volumes are getting lower than average, which is a positive sign until now.
The current downward trend seen by the local market is likely to continue over the coming trading sessions, Naguib noted.
The EGX30 index may test support at 12,950 points, however, it may break below this level and move towards 12,600 and 12,500 points, he added.
