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High EGX trading expected this week after awaited factory energy price cut - Daily News Egypt

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High EGX trading expected this week after awaited factory energy price cut

EGX to target 11,600 points level by end of October, says Aman Securities’ Al-Aasar


Traders anticipate a gradually positive performance over October on the Egyptian Exchange (EGX), in parallel with the expected announcement of energy price reductions for factories.

The blue-chip EGX30 index is also expected to experience a sideways upside trend starting this week, due to the high trading volumes.

Mohamed Al-Aasar, Head of the Technical Analysis Department at Aman Securities, predicted that the EGX30 will rise to 11,600 points by the end of this month. He added that attempts will begin during the current week to break through resistance levels to reach this target.

Mohamed Othman, Head of the Technical Analysis Department at Pharos Holding, said that the market has witnessed notably low volatility during the last four weeks. Trading has taken place between the resistance level of 11,120 points and the support level of 10,870 points.

“Monitoring the market performance at the latter levels is highly recommended, as a clear move will be followed in the direction of the breakout,” Othman said.

He added that the company will maintain its conservative attitude until a consistent buying power reappears. Short term traders are advised to hold, while placing their stop below 10,820 points.

He pointed out that the top picks are: Madinet Nasr Housing and Development (MNHD); Talaat Mostafa Group Holding (TMGH); Emaar Misr for Development (EMFD); Raya Contact Center (RACC); Credit Agricole Egypt (CIEB); Tenth of Ramadan for Pharmaceuticals (RMDA); Oriental Weavers (ORWE); Cleopatra Hospitals Group (CLHO); the MM Group for Industry and International Trading (MTIE); and the Ibn Sina Pharma Company (ISPH).

The EGX’s trading value increased by EGP 4.5bn during the last week of September, with the stock market report indicating that trading recorded EGP 14.6bn compared to the EGP 10.1bn in the previous week.

The EGX30 fell by 3.3% to reach the 10,989 points level, the EGX70 EWI for small and medium stocks jumped 8.3% to 2,003 points, and the broader EGX100 EWI up by 4.8% to 2,896 points.

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https://dailyfeed.dailynewsegypt.com/2020/10/03/high-egx-trading-expected-this-week-after-awaited-factory-energy-price-cut/
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