Technical analysts and executives at brokerage firms expect the Egyptian Exchange (EGX) to continue its profit-making wave during this week’s transactions.
EGX30 is expected to move between 8,050 and 7,993 points. Experts advise investors to purchase a number of shares if they continue to fall.
Ehab El-Saeed, head of technical analysis at Osool Securities Brokerage Company, said that the market has broken the main support level at 8,200 points falling down to 8,131 points, after being dominated by sales operations to make profits off shares that had gone up earlier.
El-Saeed expected investors to continue this trend this week, predicting EGX30 to fall to the next support level at 8,050-8,000 points.
Moreover, he said EGX70 is likely to fall back to the support level around 357-355 points.
As for stock performance, El-Saeed said stocks of the Commercial International Bank (CIB) declined significantly last week from EGP 52 to EGP 49, expecting to fall to the support level at EGP 48.5. “If the stock fails to break that level, it could go up to EGP 51,” he added.
As for Talaat Moustafa Group’s index, El-Saeed said it moved between the support level at EGP 5.8 and the resistance level at EGP 6.2, adding it is expected to trade at the support level between EGP 5.8-5.7.
He believes that Global Telecom shares are to move near their support level at EGP 3.65, while Hermes is expected to fall near the support level at EGP 12-12.1.
Ehab Rashad, managing director of Direct Broker for Securities – Mubasher, said that after the EGX30 fell to 8,131 points, it is likely to continue declining to 7,993 points.
He advised dealers to purchase while shares are low in order to make a profit once they recover again.
He pointed out that CIB, Talaat Moustafa, Madinet Nasr Housing, and Heliopolis’ shares are all good options.