By: Heba El-Kordy
Cairo – Mubasher: The Egyptian Exchange (EGX) is likely to maintain the sideways trend on Monday, analysts told Mubasher.
The benchmark EGX30 index may rebound near 16,500 and 16,570 points as a result of the weak trading volume the stock market witnessed on Sunday, capital market expert Michael Mamdouh Naguib said.
The index could test 17,000 and 17,100 points if it sees a positive rebound, Naguib highlighted.
The performance of the heavyweight Commercial International Bank (CIB) is expected to maintain the EGX’s trend, he indicated, pointing out that the stock may hit EGP 77 if it falls below EGP 86.
The small- and mid-cap EGX70 index is likely to carry on the downward trend and fall to 830 and 820 points, he added.
For his part, head of capital market committee at the African Economic Council Ayman Fouda said that the main indices of the EGX are expected to be choppy this week.
The EGX30 is expected to retest resistance at 16,930 and 17,100 points, Fouda remarked, adding that the index may retest 16,400 points if it breaks support at 16,650 points.
The EGX70 index has a short-term resistance at 860 and 878 points and has support at 840 and 836 points, he noted.
Fouda recommended investors to monitor stocks and trade on each stock separately to partially collect earnings of stocks that hit near resistance levels, in line with keeping enough liquidity to recreate new purchasing positions near support levels.
Translated by: Mai Ezz El-Din
