By: Heba El- Kordy
Cairo – Mubasher: Geopolitical tensions are likely to drag the Egyptian Exchange (EGX) down on Wednesday, analysts told Mubasher.
The EGX is expected to start today’s trading session in red territory as Dow Jones plunged nearly 400 points due to the geopolitical scene in Italy, capital market expert Michael Mamdouh Naguib said.
The benchmark EGX30 index may test 16,900 and 16,800 points, Naguib forecast, adding that the index may target 17,400 points if it settled above 17,000 points.
The EGX could see corrections in the next two trading sessions to retest main resistance levels, he said, pointing out that turnovers are acceptable during Ramadan’s trading hours.
He further noted that the index has support at 16,700 and 16,800 points.
For his part, head of capital market committee at the African Economic Council Ayman Fouda said that the EGX30 is moving in an upward direction in the short term.
The index has resistance at 17,100 and 17,336 points, and has support at 16,850 and 16,750 points, Fouda highlighted.
He added that the small- and mid-caps index EGX70 has a short-term resistance at 860 and 878 points, while it has support at 850 and 844 points.
Investors should monitor stocks carefully and get ready for creating new purchasing positions near support levels of operative stocks with positive financial results, Fouda recommended.
Translated by: Mai Ezz El-Din
