Mohammed Saeed, Member of The Egyptian Society of Technical Analysts (ESTA), said that Egyptian Exchange (EGX) benchmark index EGX 30 will bounce upwards, despite increase in interest rates.It is likely that profits would be generated temporarily, yet confident flows are expected to continue.
In a statement to MEO, Saeed said that the new levels, hit by EGX 30 last week, raised the previous resistance and support levels. The benchmark index now targets a new resistance level at 6700 points, while support levels are swinging between 6850 and 7200 points.
As for the index of small and medium stock EGX70, it focuses on a resistance level at 360 points. In case it managed to bounce higher, it is expected to continue close-up towards 370 levels.
Ahmed Al-Etefy, Financial Markets Analyst, said that profits are now expected, particularly after such high swells in EGX, but it is normal. He pointed out that investors won’t head to banks after an increase in interest rates, as they are addicted to the stock market investments, it would be tough on them to walk away amid predictions of expected new surge in markets.
