Cairo – Mubasher: The Egyptian Exchange (EGX) is expected to rise this week on the back of Standard & Poor’s (S&P) outlook upgrade to positive, analysts told Mubasher early Sunday.
On Saturday, S&P Global Ratings maintained its sovereign credit rating for Egypt at B-, and raised the country’s outlook to positive from stable owing to the country’s higher reserves and strengthening economic growth.
S&P’s outlook upgrade along with keeping its rating for Egypt will bolster the bourse in the coming period, commented Ahmed Abdelhameed, managing director at Watheeqa Securities Brokerage.
The positive outlook for the Egyptian economy will support investor confidence in the country’s economic reform programme, which in turn will be reflected on the EGX, the analyst added.
Meanwhile, analyst Tony Kamal noted that after the EGX registered its record high last week, it is likely to break resistance at 14,385 points this week.
The benchmark EGX30 index may suffer some minor profit-taking this week as well, but will continue its gains, he added, indicating that EGX30 will target 14,500 points then 15,000 points in November, with major support being at 14,200 points.
As for the EGX’s blue chips, the analyst noted that EFG Hermes has support at EGP 24 and will target EGP 26 in the coming period, whereas resistance for Talaat Mostafa Group Holding’s (TMG) share will be at EGP 9.7 with a target at EGP 11.
Meanwhile, analyst Ayman Fouda, head of the capital market committee at the African Economic Council, advised medium and long-term investors to hold on to their stocks as long as the latter are above support on the medium term, adding that they should execute minor profit-taking near support to protect their profits.
