Technical analysts predicted that the Egyptian Exchange (EGX) will continue to take advantage of the falling price of the pound, and aims to achieve a new record level near 13,050-13,100 points in this week’s trading after the New Year’s celebrations and Christmas holidays.
The EGX30 closed at a new level of 12,824.3 points, with weekly trading volumes worth EGP 6.2bn.
Mohamed Al-Assar, head of the technical analysis department for investment in North Africa and the Middle East at the National Bank of Kuwait (NBK), said that the stock market succeeded in recording a new level at 12,824 points with an increase of 3.88% despite the decline in foreign investors’ trading due to the New Year and Christmas celebrations.
Al-Assar added that EGX30 is expected to continue its sideways movement in the current week between 13,050 points and 12,600 points, with a rise in trading volumes compared to last week’s trading, which was worth EGP 6.2bn.
He predicted that EGX30 will reach 12,950 points by the end of Sunday’s trading, and will continue to rise in the second session. He also predicted that the stock market is likely to witness a decline in the second half of the week’s trading sessions.
In terms of shares, Al-Assar expects the Commercial International Bank (CIB) shares to have strong opportunities to rise from the EGP 74 to EGP 76.5. He expects the shares of Hermes to register at EGP 31.
Al-Assar also expects the Talaat Moustafa Group’s index to approach EGP 10, and Global Telecom’s to reach EGP 8.10.
Ehab El-Saeed, head of technical analysis at Osool Securities Brokerage Company, said that the market continues to reap the benefits of the flotation of the Egyptian pound, in an attempt to compensate for the losses incurred by the value of pound against the dollar.
He expects EGX30 to move between 13,000-13,100 points in this week’s trading.
El-Saeed said that CIB aims to break the EGP 75 resistance level of its shares. If successful, he believes the company’s shares would rise to EGP 78-80.
He also predicted Hermes will break the EGP 27 resistance level of its shares, moving their share price up to EGP 30-31.
El-Saeed also pointed out that Global Telecom shares succeeded to break the resistance level of EGP 7.80 before closing near EGP 7.61 by the end of Thursday’s session. He predicts the shares will hit its resistance levels again, before climbing towards EGP 8.5 per share.