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EGX30 targets 13,400–13,600 points this week - Daily News Egypt

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EGX30 targets 13,400–13,600 points this week

Technical analysts predict the EGX will continue making gains, while trading volume increases 

Technical analysts predicted that the Egyptian Exchange (EGX) will continue its positive trend this week, to equal its record performance of last week.

They nominated the EGX30 index to head to 13,400–13,600 points this week, saying it will see some gain-making operations over some sessions, while trading volume in general will increase as foreign investors return to the market after the holidays.

This comes after the EGX closed last week in the green by a $3.12 increase, hitting another record high at 13,224 points.

Trading value registered EGP 8bn across 183,000 transactions on 2.696m shares.

Ehab El-Saeed, head of technical analysis at Osool Securities Brokerage Company, said that the market has continued its strong performance, reaching its highest ever record at 13,235 before closing on Thursday near 13,223 points, pushed by strong purchases by foreign investors.

He explained that liquidity was mostly in leading shares preferred by foreign investors, while a sideways trend dominated the rest of the shares during most of last week’s sessions.

He noted that expectations remain good for EGX30, nominating it to reach 13,400–13,600 points on the short-term with the possibility of gain-making transactions throughout some sessions.

As for EGX70, El-Saeed said the index will continue moving upwards to 490 points depending on penetrating the resistance level at 466-469 points.

He expected trading volume to increase this week, driven by foreign investors returning to the market after the holidays.

Foreign and Arab investors recorded net purchases worth EGP 260.5m and EGP 2.54m respectively.

El-Saeed said that the Commercial International Bank (CIB) shares are likely to penetrate the resistance level at EGP 75 this week, which could lead it up towards EGP 80.

He also added that Hermes managed to maintain its position at EGP 27, which could promote its ability to move its share price up to EGP 30-31.

El-Saeed also pointed out that Global Telecom’s shares succeeded to break the support level of EGP 7.66. He predicts the shares will continue climbing towards EGP 8.5 per share.

As for Talaat Moustafa Group’s shares, he said they will continue to move near EGP 9.8, which is a level, if broken, could continue up towards EGP 10.5.

Hany Helmy, chairperson of Al-Shorouk Brokerage, suggested that the EGX still has reasons for investors to inject their funds.

He added that investors still believe that the US dollar value is overrated against the national currency, which makes the EGX a good mechanism to offset the low purchasing value of the currency.

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