By: Heba El-Kordy
Cairo – Mubasher: The Egyptian Exchange (EGX) is likely to resume the upward trend in the first trading session of March 2019 as the government initial public offering (IPO) programme started.
Last Friday, public business sector minister Hisham Tawfiq stated that Eastern Co’s private placement had been oversubscribed 1.8 times at EGP 17 per share, which is 3% premium to the stock’s closing price in Thursday’s trading session.
The benchmark EGX30 index jumped by 677points, or 4.79%, in February, closing that month at 14,803 points, versus 14,126.68 points in January.
The indices of the EGX are expected to start March positively with the emergence of new purchasing positions after the temporary correction ended last month, branch manager at Mubasher Financial Services (MFS) Safwat Abdel Naeem said.
The EGX30 index may test 14,700 and 15,200 points this week, Abdel Naeem highlighted, adding that the small- and mid-cap EGX70 index could test 714 and 736 points.
For his part, head of capital market committee at the African Economic Council Ayman Fouda said the main indices of the EGX are likely to see sideways-to-rising trend during the first week of March.
The benchmark may resume the bullish trend and target resistance at 14,900 and 15,320 points and support at 14,775 and 14,480 points, Fouda added.
Meanwhile, the EGX70 index has a short-term resistance at 720 and 726 points, while it has support at 711 and 705 points, he indicated.
Moreover, Osama Naguib, head of technical analysis at Arab Finance Securities, said that the EGX30 index has performed positively last Thursday as it has not confirmed the bearish trend at the support level of 14,800 points.
Naguib projected the benchmark to begin rising temporarily between 15,150 and 15,200 points.
It is worth noting that the Egyptian Financial Regulatory Authority (FRA) had decided to activate securities borrowing for selling purposes.
Translated by: Mai Ezz El-Din
