EGX to end correction movement this week Analysts

Cairo: The indices of the Egyptian Exchange (EGX) are likely to rebound from 15,400 points to target 16,400 points during the second week of June 2018, analysts told Mubasher.

The EGX is still anticipating new local economic changes, including the projected rise in the minimum monthly salaries and hike in inflation rates, branch manager at Mubasher Financial Services (MFS) Safwat Abdel Naeem said.

These expected changes are the reason behind the EGX’s declining performance since early May, Abdel Naeem added.

The benchmark EGX30 index may rebound temporarily from 15,400 points to 15,700 and 16,400 points to fall again below 16,000 points, he forecast.

He indicated that the small- and mid-cap index EGX70 is likely to rebound from 770 points.

He recommended investors not to trade on margins until the stock market is stable above 16,400 points for at least three consecutive sessions.

For his part, CEO of Osool ESB Securities Brokerage Saeed El-Feki said that the EGX had closed last week near 16,000 points, pointing out that it is seeing a correction movement in the medium term.

The EGX30 index has rapidly fallen near 15,800 points after hitting record highs near 18,500 points as investors were concerned over the correction phase, in addition to the anticipated increase in fuel prices in the coming period, El-Feki highlighted.

He projected the EGX to see a sideways trend to target 16,400 points and the correction movement to end soon as stocks’ prices have become attractive for buying.

Translated by: Mai Ezz El-Din