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EGX expected to range from 8,400 to 8,500 points this week - Daily News Egypt

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EGX expected to range from 8,400 to 8,500 points this week

Technical analysts predict that the Egyptian Exchange (EGX) will continue its rising trend, to reach 8,450 and 8,500 points during this week’s trading. Should the EGX face resistance, it could result in a decline to 8,100 points. The expectations tailed an increase in EGX30, as it had reached 8,255 points. The market has been climbing …


Technical analysts predict that the Egyptian Exchange (EGX) will continue its rising trend, to reach 8,450 and 8,500 points during this week’s trading. Should the EGX face resistance, it could result in a decline to 8,100 points.

The expectations tailed an increase in EGX30, as it had reached 8,255 points. The market has been climbing by 2.88% over the past week with support from purchases of Egyptian and Arab investors.

Analysts recommended that investors continue forming purchasing centres selectively, rather than extensively, as was the case over the past two weeks.

 

Mohamed El-Assar, head of the technical analysis division in the National Bank of Kuwait (NBK) of the Middle East and North Africa markets, said that EGX has recorded 8,200 points, which makes way for it reaching 8,450 points.

He noted that EGX might experience profit-making, which would push the index to dive to 8,100 points.

Purchasing centres must be formed selectively, rather than extensively, for shares that could increase, according to El-Assar. An example is Arab Cotton Ginning Company (ACGC), whose shares aim to move between EGP 2.95 and EGP 3.12.

He noted that the list of shares also includes Ezz Steel, expected to move between EGP 8.35 and EGP 9.1. Orascom Telecom Media and Technology Holding (OTMT) is expected to move between EGP 0.5 and EGP 0.61, while Palm Hills is expected to move between EGP 2.6 and EGP 2.77.

 

Ehab Saeed, director of the technical analysis division of Osool Securities Brokerage, said that the stock exchange is benefiting from the government’s negotiations with the International Monetary Fund, regarding a $12bn loan. It is expected to receive more support after the Central Bank of Egypt fixed the interest rate last week.

He expects the EGX to move between 8,400 and 8,500 points, benefiting from the positive movement of the leading shares.

Regarding the performance of the most prominent stock shares, Saeed said that the shares of Commercial International Bank (CIB) exceeded EGP 47 last week, which makes way for an increase up to EGP 52. The Talaat Moustafa shares, which stand at EGP 5.80 each, might test the resistance level, and if it exceeds that range, its price may reach EGP 6.20.

Saeed also nominated the Hermes share to test the resistance level (EGP 13.80 – EGP 14), although this resistance level is expected to hinder the rising of the stock that took place last week.

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