By: Heba El-Kordy
Cairo – Mubasher: The Egyptian Exchange (EGX) is likely to maintain the bullish trend, buoyant liquidity, high trading volume by the beginning of the New Year.
By the beginning of 2018, investors of the EGX should trade on financially strong stocks, instead of speculative stocks, technical analyst Safaa Fares told Mubasher.
Investors should keep liquidity in their current portfolios to enter new initial public offerings (IPOs) within the New Year, she added.
The benchmark EGX30 index is still moving upwardly on the back of the heavyweight Commercial International Bank (CIB), she highlighted, pointing out that all the index’s stocks are facing accumulations.
The EGX30 index has resistance at 15,200 points and an upside potential at 15,500 points, she indicated, adding that the index has support at 14,860 points and a downside potential at 14,677 points.
The small- and medium-caps EGX70 index has resistance at 839 points and an upside potential at 850 points, while it has support at 818 points and a downside potential at 805 points, the analyst noted.
Moreover, capital market expert Toni Kamal said that the EGX30 index has closed 2017 above 15,000 points, which will bolster the EGX to see a positive performance in 2018.
The EGX70 is likely to end the sideways trend in the first trading session of 2018, Kamal forecast.
The EGX is forecast to see calm sideways move early Tuesday, head of capital market committee at the African Economic Council Ayman Fouda said, adding that the blue chips are likely to push the main indices to new resistance levels.
The EGX30 index is expected to test resistance at 15,300 points if it settles above 15,060 and 15,100 points, while it has support at 14,930 and 14,860 points, Fouda added.
The EGX70 index has a short-term resistance at 830 and 850 points, while it has support at 815 and 811 points, the analyst noted.
“We won't recommend starting new positions as long as the volumes are weak moreover we would advise a partial profit taking,” he continued.
The EGX is expected to carry on the positive performance to hit new significant levels on the back of projected government IPOs, analysts told Mubasher.
Translated by: Mai Ezz El-Din
