Cairo-Mubasher: The Egyptian Stock Exchange (EGX) is expected to continue its fluctuations along with a negative outlook in the short term, impacted by the Central Bank of Egypt’s (CBE) decision to raise interest rates, analysts told Mubasher.
CBE increased the basic interest rate by 1% on deposits and loans, according to a previous statement.
Most stocks witnessed selling pressures by institutions and investment funds on Monday, according to Ayman Fouda, head of capital market committee at the African Economic Council.
The market is likely to continue its fluctuation, yet some stocks will rebound so that traders will have the opportunity to decrease their positions and protect profits, the analyst added.
If the blue-chips stocks see new liquidity, the main index will test the 7,275-7,326 area with the support level standing at 7,165-7,100 points, Fouda said.
The EGX30 index is moving between its support at 7,080 points and resistance at 7,375 points, Hesham Hassan, head of technical analysis at Acumen for Securities, told Mubasher.
The minimum stop-loss level stands at 7,375 points, Hassan noted.
