Ihab Saeed, managing Director at Osool ESB Securities Brokerage, said that Egyptian Exchange (EGX) benchmark index EGX30 is facing a new support level at 7425 points, during this week’s trading. In case it failed to remain above it, it will probably keep falling downward at 7280 points.
In a statement to MEO, Saeed said that stock trading is influenced by the news on President El-Sisi and Investment Minister Korshid’s meeting to discuss offering a stake of public companies in EGX for support. The whole market keeps a close eye on the meeting, amid the lack of positive news, following decisions of pound devaluation and Orascom’s acquisition over CI Capital. Holding up this deal for the fourth time in a row for 15-30 days, till Egyptian Financial Supervisory Authority’s requirements are fulfilled casts dark shadows over its future. This had in turn a clear impact on the market’s performance, pushing indicators to swing back and forth and trade volumes and values to decline.
As for the index of small and medium stock EGX70, it remains focused on the previous support level, which now turned to a resistance level, at 372 points, which is expected to hinder it from bouncing higher.
