Technical analysts in brokerage companies expected the Egyptian Stock Market (EGX) to decline during Sunday’s trading to reach the level of 6,700-6,800 points.
The EGX will be affected by the severe decline in the Gulf and international stock markets after the fall of the price of oil due to heightened Saudi-Iranian political tensions and Chinese currency devaluation.
The main index EGX 30 closed last week’s trading on a decline of 1.19% at 699.71 points.
Head of the analysis department in Naeem Investment Bank Ibrahim El-Nimr said this week, EGX will witness a real test in light of the decline hitting international stock markets.
He expected that EGX 30 will initiate its Sunday’s trading with a decline to the level of 6,700 points due to the fall in oil prices, approaching the level of $32 per barrel, which is the lowest price since 2004.
It is expected that EGX will continue to decline over the week and to break the level of support, marking 6,700 points, he said, noting that when that happens, it will take a downwards trend to the level of 6,300 points.
Despite the positive performance of the small and medium shares index EGX 70 over last week, recording 2.62%, it will not continue in light of the weakness of major shares in the EGX, El-Nimr said.
He also expected that EGX 70 would decrease from 376 points to 369 points.
Head of the analysis department and board member in Osool Securities Brokerage Ihab Al-Saeed said it is expected that on Sunday, the EGX performance will be affected by the severe decline in the Gulf and European stock markets.
He presumed that the EGX will decline to the level of 6,800 points during Sunday’s trading, which will be followed by a general decline in the week’s trading.