Cairo – Mubasher: The Egyptian Exchange (EGX) is likely to recover on Monday, the second trading session in June 2018, analysts told Mubasher.
The main indices of the EGX have jumped on the first trading session of this month amid purchasing powers on the blue-chip stocks, head of capital market committee at the African Economic Council Ayman Fouda said.
This signals the market direction towards recovery after seeing correction Last May, Fouda added.
Blue chips will resume speculations again in an attempt to target sub-resistance levels, which are witnessing weak turnovers due to the calm trading in the holy month of Ramadan and the implementation of the second tranche of the stamp duty by 1.5 in 1,000, he highlighted.
The benchmark EGX30 index has a short-term resistance at 17,100 and 17,360 points and has support at 16,600 and 16,525 points, he indicated.
Meanwhile, the small- and mid-caps index EGX70 has a short-term resistance at 853 and 860 points and has support at 830 and 820 points, Fouda added.
For his part, head of relations manager at Arabeya Online Michael Mamdouh Naguib said the EGX is able to test 17,052 points as it has main resistance at 16,760 points.
Naguib noted that the EGX’s correction movement may end and retest resistance or it may move in a downward direction again.
He recommended investors to cautiously trade on each stock separately in the meantime.
