Ihab Saeed, Osool ESB Securities Brokerage’s Managing Director, said that EGX 30 managing to break through previous resistance level at 7700 points, which turned to support level, and to stay above it will push the index up to 8000-8200 points.Â
During last week’s trading, EGX 30 kept moving upwards breaking main resistance level near 7700 points, reaching its highest since August 2015 at 7918 points, Saeed said in a statement to Middle East Observer. By the end of the week, the index closed at 7781 points, because most leading indicators regained their positive performance, on top of them is Commercial International Bank›s stocks.
Saeed added that traders at the Egyptian Stock Market await exchange market to become relatively balanced, mainly the Egyptian pound would maintain a level
near its current one which many international institutions believe to be its fair value.
Whereas, Osool’s managing director expects the Central Bank to further devalue pound any time soon, despite its governor’s denial. Any additional devaluation would bring more investments and deposits at CBE, which might contribute to reforming the $3.5bn deficit of payments balance.
As for the index of small and medium stock EGX70, it focuses on resistance level near 386 points, which is projected to hinder it from going up, at least for now.
