Cairo - Mubasher: The Egyptian Exchange (EGX)is expected to continue positive performance on Thursday, after Egypt's central bank (CBE) decision of holding an exceptional dollar sale auction in the coming period to inject dollar liquidity needed to import commodities, capital market experts told Mubasher.
CBE announced Tuesday the full payment of all foreign portfolio investors’ outstanding orders totaling $547.2 million. Thus, the central bank cleared all the pending backlog to date.
The benchmark index EGX30 jumped by Wednesday’s late trade after CBE's announcement, to reach 6.649 points amid high trading volumes said Mona Hassan, chief technical analyst at MubasherTrade.
The benchmark targets the level of 7,000 points, if it breaks above the resistance levels of 6,650 and 6,700 points, noted Hassan.
The market will resume this postive performance, as long as there is adequate liquidity that will enable the stocks as well as the indices to gain momentum to reach its targets, said Ayman Fouda, head of capital market committee at the African Economic Council.
The main gauge currently targets the resistance levels of 6,800 and 6,950 points after it succeeded in keeping its position above the level of 6,640 points in the previous session, noted Fouda.
The benchmark eyes the level of 7,062 points, and expected to gain support the levels of 6,600 and 6,530 points, noted the analyst.
Egypt’s bourse rose on Wednesday, as the main index added 224.84 points to close above the 6,600 barrier at 6,649.72 points, with a jump of 3.5%, which is the biggest gain since 18 May, 2015.
