Raafat Abdel Moez, Technical analyst at Osool ESB Securities Brokerage, said that Egyptian Exchange (EGX) benchmark index EGX30 re-focuses this week on resistance level at 7700-7750 points, which is expected to hinder it from keeping moving upwards.
In a statement to MEO, the analyst said that investors are confused, because EGX’s management still maintains its decision to uphold daily trading on Beltone stock. Moreover, it started to cancel dealings with certain prices, based on Article 21 of Money Market Law. This article is considered loose, since it gives the stock management the right to end any trading with unreasonable prices. The difference between reasonable and unreasonable prices is subject to individual judgments, and it is not on the stock management to do that, but it is the job of research departments at money market companies. That’s why, the problem basically emerges from Article 21 and not what the stock does, since they only apply the law.
As for the index of small and medium stock EGX70, Abdel Moez said it focuses on resistance level near 375 points, which is forecast to stop it from moving upwards.
