Cairo - Mubasher: The Egyptian Exchange (EGX) is expected to continue seeing selling pressures on Wednesday, after the negative news about the findings of the investigations related to the recent crash of the Russian aircraft in Sinai.
Russian officials said Tuesday they found evidence that the plane that crashed in Egypt last month was downed by a bomb; the first time those investigating the crash have cited proof of terrorist involvement.
"EGX still suffers the shortage of liquidity and the exit of most funds, especially after the outlook on Egypt’s credit rating was cut to stable from positive by Standard & Poor’s", said Ayman Fouda, head of capital market committee at the African Economic Council.
The benchmark index EGX30 will have support at the levels of 6,320 and 6,400 points, he added.
Meanwhile, the benchmark will likely target the levels of 6,640 and 6,580 points as long as it keeps its position above the level of 6,500 on strong purchasing power over leading stocks, noted the analyst.
On Tuesday, the market capitalisation shed nearly EGP 1.8 billion ($230.3 million), while EGX30 lost 1.13% or 73.32 points to close at 6,407.33 points.
