Cairo – Mubasher: The Egyptian Exchange (EGX) is likely to continue the sideways trend over the last week of January, analysts told Mubasher.
Saeed El-Feki, CEO of Osool ESB Securities Brokerage, said that the EGX has seen a wave of profit-taking last week, and the benchmark EGX30 index is hovering around 15,000 points.
El-Feki attributed that the declining performance EGX witnessed last week to investors’ concern over the Central Bank of Egypt’s (CBE) upcoming decision regarding interest rates.
The indices of EGX are projected to resume the upward trend, and retest 15,300 points, he said, adding that settling above this level would push the EGX30 index towards 15,500 points.
The small-and-medium caps EGX70 index may test 865 points over the coming period if it breaks resistance above 850 points, he highlighted.
Selling pressures on blue chips have driven EGX30 down last week, head of technical research at Roots Stock Brokerage House Sameh Gharib said.
The EGX30 has support at 15,075 points and may test resistance at 15,300 points if it sees a positive rebound above the current support level, Gharib pointed out.
The EGX70 index is currently moving between 837 and 858 points, he added, noting that the index may test resistance at 875 points if it surpasses 858 points.
Moreover, head of capital market committee at the African Economic Council Ayman Fouda said that the EGX’s volatile sideways trend is expected to maintain over the last week of January.
Breaking resistance above 15,250 and 15,330 points will bolster the EGX30 index to retest resistance at 15,400 and 15,500 points, Fouda explained, adding that the index has support at 15,080 and 14,930 points.
