EGX expected to move between 7,050 and 7,300 points this week

Mohamed Ahmed
3 Min Read
Last July, Mehleb's government approved imposing a 10% tax on dividends in addition to another 10% tax on capital gains earned from investment in the stock market, but it halted the decision, citing maintaining market competitiveness. (Photo by Mohamed Omar)

Technical analysts and executives of brokerage firms predicted that the Egyptian Exchange (EGX) will move between 7,050 and 7,300 points during this trading week.

Money market experts expect that the EGX will continue rising during Sunday and Monday, as recorded before the Eid Al-Fitr holiday. The market will witness minor profits during the rest of the week, if the Egyptian pound’s exchange rate remains consistent.

EGX closed at 7,182.8 points on Monday, with a 2.88% increase.

Tarek Amer, governor of the Central Bank of Egypt (CBE), said on Sunday that he personally would not rejoice the stability of the exchange rate while factories are out of order. He added that the CBE will bear the results of its decisions.

For his part, Mohamed Al-Aassar, head of the technical analysis department at the National Bank of Kuwait (NBK), said that the current trading week will move between 7,050 and 7,300 points.

He added that EGX30 is expected to record 7,300 points during Sunday and Monday, a complement to the rise recorded before Eid Al-Fitr holiday.

He added that in case the CBE makes a decision to reduce the exchange rate, EGX will exceed 7,300 points. If not, the market will reach 7,050 points.

As for EGX70, El-Aassar suggested that it is likely to increase from 354 points to 362 points during the week.

With regard to the stocks’ performance during the week, El-Aassar expected the Commercial International Bank stock to move between EGP 40 and EGP 42.5, Global Telecom stock to move to EGP 3.5, Palm Hills to trade at EGP 2.5, Emaar Misr at EGP 2.45, Ezz Steel stock to EGP 8.40, and Hermes stock to EGP 12.

Chairperson of the Board of EAC Securities Brokerage Adel Abdel-Fattah expected the EGX to start the deals of Sunday with gains in continuation of the hike trend it began last week.

He noted that Egyptian institutions’ trend is to buy, while foreigners sell, recalling what had happened when the CBE devaluated the Egyptian pound in mid-March by EGP 1.12. “It gives the impression that a devaluation of the Egyptian pound may occur soon, which would push the EGX up,” he said.



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