Technical analysts expected that the Egyptian stock market (EGX) will witness a contrasting performance on Sunday resulting from some recent events, including the US Federal Reserve Board’s decision on Wednesday to stabilise the interest rate and the slight rise recorded by EGX on Thursday as well as the Central Bank of Egypt’s (CBE) decision last Thursday to raise the interest rate by 1% to face the increasing inflation.
Analysts predicted that purchasing powers will be dominant during the trading session and push the EGX-30 index to reach 7,480 points amid weak trading volumes. However, they warned of possible fluctuation in market performance during the week trading sessions, adding that EGX-30 will range between 7,200-7,600 points.
Mohamed Al-Assar, head of the Technical Analysis Department for Investment in North Africa and the Middle East at the National Bank of Kuwait (NBK), said that the stock market will witness limited movements amid a decline in trading volumes on Sunday, affected by the CBE’s decision to raise interest rates and the decline in trading on the Commercial International Bank’s (CIB) shares due to the conversion of large quantities of its shares to GDRs at the London Stock Exchange.
Al-Assar predicted that the market will take advantage of the EGX’s closure at an increase on Thursday, as EGX-30 index is expected to close at 7,480 points.
He added that the stock market is expected to continue its rise during Monday’s session and exceed 7,500 points, but it will face some selling pressures during the rest of the week, which will make the index range between 7,200 and 7,580 points.
In terms of the expectations of the shares’ performances, Al-Assar expects the CIB share to move between EGP 40.25 and EGP 43.25, Telecom Egypt between EGP 8.40 and EGP 9.25, Egypt Kuwait Holding between EGP 0.38 and EGP 0.43, Global Telecom between EGP 2.95 and EGP 3.25, and Al Qalaa Holdings between EGP 1.15 and EGP 1.24.
For his part, Ibrahim El Nemr, head of the Technical Analysis Department in Naeem Holding, said that Sunday’s session will witness a lot of action as a result of the increase in interest rates on one side and the purchasing power beating the selling power in Thursday’s session. It is expected that the stock exchange will succeed in closing with an increase of 1% during Sunday’s trading, approaching the level of 7,500 points.
In terms of shares, El Nemr expected the Hermes share to reach EGP 11.8 and the Pioneers share to reach EGP 11, while the Talaat Moustafa share is expected to reach EGP 6.25.