By: Heba El-Kordy
Cairo – Mubasher: The Egyptian Exchange (EGX) is likely to carry on the downward trend on Thursday, analysts told Mubasher.
The benchmark EGX30 index has been facing correction since last week, capital market expert Michael Mamdouh Naguib said.
The EGX is expected to maintain the downward trend it saw yesterday, Naguib forecast, pointing out that the index has support at 17,000 points.
The EGX30 may test 16,700 and 16,500 points if it falls below main support, he added, recommending investors to keep liquidity and monitor stocks carefully until the currently volatile trend ends.
Naguib also noted that Global Telecom may retest resistance at EGP 5.3 on Thursday’s trading session as it was not able to break this level on Wednesday.
For his part, head of capital market committee at the African Economic Council Ayman Fouda said that the EGX will continue seeing a negative performance on Thursday.
The Egyptian bourse is likely to see new purchasing powers that push stocks and indices to main resistance levels, he highlighted.
The EGX30 index is still moving in a downward direction and has a short-term resistance at 17,886 and 17,950 points, he indicated, adding that by breaking above this level the index may retest 18,000 points.
He also said that the index has support at 17,330 and 17,200 points.
Meanwhile, the small- and medium-caps EGX70 index has resistance at 878 and 885 points, while it has support at 855 and 840 points, Fouda added.
Translated by: Mai Ezz El-Din
