Predictions by technical analysts and executives of brokerage firms that the Egyptian Exchange (EGX) would continue its rising trend found proof during this week’s trading with support from purchases from foreign investors. They also expect that the EGX30 might test the resistance level of 8,500 points.
The director of the technical analysis division of Osool Securities Brokerage, Ehab Saeed, said that EGX30 succeeded in remaining at the resistance level of 8,300 points last week, and closed at the end of the trading week near the level of 8,368 points, benefiting from the positive movement of the leading shares.
This good performance comes on the back of recent news of the potential devaluation of the Egyptian pound.
Saeed predicts that EGX30 might test at a resistance level of 8,500 points, targeting 8,800-9,000 points in the short term.
Regarding the performance of small- and medium-sized stock shares, Saeed expects that the EGX30 might move between 357 and 360 points.
Regarding the performance of stock shares, Saeed said that the shares of Commercial International Bank (CIB) exceeded EGP 50 last week and closed near the level of EGP 52.05, which makes way for an increase up to EGP 53, perhaps even targeting the level of EGP 56.
The Talaat Moustafa Group Holding Company (TMGH) shares might test the resistance level of EGP 5.90 – 5.95 during this week after it succeeded in last week’s trading to increase and close near the level of EGP 5.65.
Saeed pointed out that Global Telecom shares exceeded the resistance level of EGP4.30 to close at EGP 4.65 during last week’s trading, recording its highest level at EGP 4.69 in February.
He added that Global Telecom would try to remain on the resistance level of EGP 4.60, targeting to reach the level of EGP 5.
Saeed also expect that the Hermes share might move to the level of EGP 14.10, it is also expected that the Hermes share continues to rise to the level of EGP 15.
The managing director of Direct Broker Securities Mubasher, Ehab Rashad, said that the market has seen a flow of new liquidity over the past week, which has led to higher trading volumes ranging between EGP 600m to EGP 700m, compared with EGP 400m from earlier this year.
Rashad predicted that the EGX will continue its rising trend, supported by the liquidity flowing into the market, as well as purchases by foreign investors.