EGX to see sideways trend this week on lack of market catalysts

Alyaa Stohy
2 Min Read

The Egyptian Exchange (EGX) saw substantial fluctuations in the past week, due to the absence of positive economic news and market catalysts. 

Accordingly, traders expect EGX to likely see a sideways upside performance this week, and the market is expected to push past 11,200 points.

Mohamed Othman, senior technical analyst at Pharos Holding for Financial Investments, believes that trading volumes should be monitored for the presence of buying forces. Othman explained that new trading opportunities will only be available if buying forces return to the scene regularly.

He added that, if the markets break the 11,120 points barrier, this will be taken as an early sign of recovery.

Similarly, Ibrahem Elnemr, Head of Technical Analysis Desk at Naeem Brokerage, expects that the EGX is likely to move sideways between 10,800 and 11,200 points, before being able to reach the 11,500 points level.

Elnemr added that the blue-chip EGX30 index is likely to witness a sideways trend, rising towards the 10,800-11,200 resistance levels, so long as it remains above the 10,800-points in the upcoming trading sessions.

The performance of EGX indices varied over the past week, with Egyptian and Arab investors heading towards buying, while foreigners preferred to sell. Foreign investors’ sales recorded EGP 211.5m.

The EGX30 fell by 0.18% to reach 11,050 points, the small- and mid-cap EGX70 EWI rose 4.23% to 1,935 points, while the broader EGX100 EWI declined 3.22% to 2,824 points.

Trading values decreased by EGP 4bn, recording EGP 17.1bn compared to EGP 21bn in the previous week’s transactions. Shares accounted for 39.94% of the total value of trading, while the trading value of bonds represented about 60.06% during the week.

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