Stock market analysts expect the Egyptian Exchange (EGX) to witness a positive performance during the current week’s trading sessions, towards resistance level of between 10,800-11,000 points.
It comes particularly after the high volatility that the market witnessed over the past two weeks.
Mohamed Othman, Head of the Technical Analysis Department at Pharos Holding, said, “We are maintaining our point of view that the likelihood of witnessing an upward move remains high, as long as the Index keeps trading above the support area lies between 10,400 – 10,270 points.”
The next resistance level to watch lies at 10,800 points followed by 11,000 points where the buying power will be examined strictly.
He added that, in case of witnessing any reluctance from the above resistance levels, this will be the normal scenario especially after the high volatility that the market witnessed over the past two weeks. It suggests the probability of witnessing a less volatile trading range on the near term.
Meanwhile, those who are heavily investing in the market are advised to reduce positions at relatively better levels, while short term players who stepped in by this rebound should place their stop lose below Tuesday’s lows.
The benchmark index EGX30 closed at 10,870.46 points, recording a decline of 0.44%. At the same time, the EGX70 EWI posted an 11.34% loss, concluding the period at 1,842.89 points, while the S&P index declined by 3.26% to conclude the period at 1,718.78 points.
The total value traded recorded EGP 15.9bn, while the total volume traded reached 2,562 million securities executed over 193,000 transactions last week.
For the week before last, the total value traded recorded EGP 13.6bn, while the total volume traded reached 3,290 million securities executed over 178,000 transactions.
Stocks trading accounted for 30.46% of the total value traded of the main market,
while the remaining 69.54% were captured by bonds over the last week.
Total market capitalisation reached EGP 651.6bn at end of period, representing a decrease of 2.71% over the last week.
