MEO – Ehab Sa’eed, Head of the Research department in Osol Company for brokerage, said that EGX 30, the main Egyptian stock market index, is facing a new resistant level at 6900 points during this week’s trading, and in case of bouncing higher, it is expected to mount gradually towards its targeted 7250 points.
Sa’eed pointed out to “MEO” that the central bank political monetary committee announcement of raising short-term interest rates by 50 points (0.5 per cent), either on deposit or lending, will have no effect on the stock market in the short-term. He added that this hike was expected, especially after the raised interest rates on investment certificates by 3.5 per cent, which resulted in Market loss of EGP 40 billion.
Sa’eed also assured that the sharp falls of Gulf and US stock markets last week, as a result of the oil price plummet (reached 11 years low), had no implications on the Egyptian market performance, as its index managed to rise higher.
Regarding EGX 70 performance (small and medium stocks index), the Head of Osol’s research department said that market will focus on the new resistance level of about 373 points, and if it recorded a hike, it is speculated to move towards 385 points.
He shed lights as well on the positive performance of some leading stocks, with the World Bank stock in the forefront, which succeeded in bouncing high to the targeted EGP 37.50, however failed to exceed it because of profit taking operations that caused the stock to retreat to EGP 36, before closing on EGP 36.14on last Thursday session. This performance had a remarkable role in sustaining the Egyptian stock market hike last week, he added.
