Cairo – Mubasher: The Egyptian Exchange (EGX) is expected to test the level of 11,574 points on Wednesday, which on passing it will confirm a rise, whereas falling below it will result in a mixed performance, analysts have said.
The EGX30 hit the resistance level of 11,650 points on Tuesday then began profit-taking and correction, to close at 11,519 points, noted Osool ESB Securities Brokerage CEO Saeed El-Feky.
The recent gains on the EGX were primarily linked to the dollar's rise to EGP 18, the analyst commented, adding that the bourse's rise has become linked to the increase in the value of the US dollar.
The EGP was floated this month against foreign currencies. Foreign buying reached around EGP 500 million daily on the EGX after the floatation.
El-Feky said he expects profit-taking to continue, sending the EGX30 towards 10,800 points, at which point investors will begin forming new positions, prompting a rise towards 12,000 points as a first target.
EGX indices closed mixed on Tuesday, with the benchmark EGX30 shedding 0.2% or 23.27 points and closing at 1,519.8 points, while the small and medium caps index EGX70 added 1.3% to close at 438.4 points.
