Cairo – Mubasher: Fluctuations on the Egyptian Stock Exchange (EGX) are expected to continue, amid expectations for new catalysts to pump additional liquidity into the market, according to analysts.
The EGX indices are still moving downwards on the short-term, until the emergence of positive news that could encourage investors to pump liquidity into the market, supporting it to test close resistance levels, Ayman Fouda, head of capital market committee at the African Economic Council, stated.
Fouda predicted that the mid-week session will witness a cumulative horizontal movement with some profit-taking operations.
The main index is witnessing short-term resistance at 12,525 and 12,580 points and by settling above it, it will target 12,629 then 12,745 points, with support at 12,410 and 12,350 points. The small- and medium-sized enterprises index EGX70 has short-term resistance at 588 and 594 points, with support at 580 and 577 points, Fouda added.
He also advised building new purchasing positions on strong stocks while maintaining sufficient liquidity in portfolios.
Meanwhile, technical analyst at Mubasher International Securities Shahd Raafat stated that the EGX is expected to decline a little, targeting 12,745 points.
