EGX30 index records 0.9% weekly gains, making 10,860-10,935 points as key resistance area

Alyaa Stohy
2 Min Read
A general view of the Egyptian Exchange (EGX) in Cairo August 18, 2013. Egypt's stock market fell sharply on Sunday as it resumed trading after hundreds of people were killed in a crackdown by the army-backed government on supporters of the Muslim Brotherhood. Banks and the stock market reopened for the first time since Wednesday's carnage, with shares rapidly falling 2.5 percent. REUTERS/Louafi Larbi (EGYPT - Tags: POLITICS CIVIL UNREST BUSINESS)

The main Egyptian Exchange (EGX) index, the EGX 30, closed at 10,742.23 points recording weekly gains of 0.9% at the end of trading last week, to record the 10,860 to 10,935 points range as a key resistance area.

Meanwhile, the EGX70 EWI index posted a 10.13% gain, concluding the last week at 2,763.58 points, while the small and mid-cap index EGX 70 rose by 2.86% to conclude the period at 1,816.31 points.

Mohamed Othman, Head of the Technical Analysis Department at Pharos Holding, said that buying power will be examined strictly at the latter resistance area, as a successful breach above would trigger a recovery signal in the medium-term. In this regard, the key resistance area lies between 10,860-10,935 points.

He added that Pharos Holding advises its investors to adopt a more conservative discipline to control the risk at the current market levels. This should occur by reducing marginal exposure, realise quick profits for trades that achieved targets, and trail protective stops for each stock separately.

“Our first minor support level lies at 10,685 points followed by the level at 10,550 points, he said, adding, “Total market capitalisation reached EGP 701.6bn at the end of the period, representing an increase of 2.37% over the period.”

Meanwhile, the EGX30 recorded an increase of 4.73%, whilst the EGX70 EWI index posted an 18.97% gain concluding July at 2,763.58 points.

Meanwhile, the small and mid-cap index EGX 70 index rose by 4.4% to conclude the month at 1,816.31 points.

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