Cairo – Mubasher: Cairo – Mubasher: The Egyptian Exchange (EGX) may see an end to the sharp declines witnessed in the previous sessions, coinciding with the Central Bank of Egypt’s (CBE) decision on the interest rate for loans and deposits today, analysts told Mubasher.
Negative economic news both domestic and foreign has deepened the losses incurred by all of the EGX’s indices, resulting in the breaking of several important support levels and the main index sliding 2.05% to 7,414 points on Wednesday, as well as the EGX70’s loss of 1.76%, commented Ayman Fouda, head of capital market committee at the African Economic Council.
GCC markets, on the other hand, were down on falling oil prices, as Brent crude retreated below $50 per barrel, the analyst noted, adding that investors are awaiting the UK’s referendum for exiting the European Union (EU) and its results.
The analyst said he expects the EGX to see a halt in the sharp declines it has seen lately, especially as stock prices have reached attractive buying levels for medium and long-term investment.
Meanwhile, Hoda El-Menshawy, head of research and analysis at EGS Brokers noted that the EGX30 index is likely to test the level of 7,425 points to either break it and continue its descent or rebound and resume the sideways-to-rise movement on the short-term and the rising trend on the medium-term.
Should the index fail to rebound, it will continue its sideways performance and decline to the levels of 7,407, 7,380 and 7,306 points, respectively.
Similarly, Shahd Raafat from Mubasher International for Securities, noted that the benchmark index had “declined sharply” closing at 7,414.
A further drop towards the levels of 7,300-7,280 is expected, the analyst added, highlighting that “breaking below 7,280 is considered a stop loss call for the short term investments.”
