By Mahmoud Hammad
Mohammed Saeed, member of the Egyptian Society of Technical Analysts (ESTA), said that Egyptian Exchange (EGX) benchmark index EGX 30 will witness -during this week’s trading- swings trending upwards on the short-term, especially after the past two weeks ‘purchase rush’.
Saeed pointed out that positive incentives started to emerge weakening, in turn, pressures in markets to sell. On top of these incentives is the upturn in monetary policies since Tarek Amer Governed the Central Bank of Egypt (CBE). Latest of these, was raising cap on dollar deposits to one million dollars per-month, although the market still needs more upturns. Foreign pressures have weakened as well, specifically the recovery of oil prices and in global financial markets.
In a statement to MEO, Saeed added that the main trend in EGX is pointing downwards, yet on the short-term and during this week’s trading, it is an upward short-term correctional trend. As it targets resistance levels at 6150 and 6350 points, support levels at 6000, 5900 and 5750 points.
As for the index of small and medium stocks EGX70, the index recorded a slight increase of 0.16 per cent as it closed at 349.94 points, Head of Research Department at Prime Holding, Abu-Bakr Imam, said.
Imam pointed out to MEO that EGX 70 is swinging on the short-term between levels at 359 and 345 points. He added that on the medium-term, EGX 70 is trending downwards at a minimmum 385 points. Meanwhile, he advised short-term investors to wait for new signs.
During last week’s trading, EGX gained around EGP 3.6bn as market cap by the end of the week -closing at EGP 389.75bn against EGP 386.15bn. While EGX benchmark index recorded a 2.27 per cent increase -closing at 6079 points.
