EGX to maintain bull run this week - Analysts

Cairo: The Egyptian Exchange (EGX) is likely to touch 16,500 points this week on the back of positive news of blue-chip stocks, analysts told Mubasher.

All the indicators emphasise the market’s positive performance in the coming period to move near 16,500 points this week, branch manager at Mubasher Financial Services (MFS) Safwat Abdel Naeem.

The EGX is projected to open in green territory on the back of positive news, as Netherlands-based VEON offered to buy Global Telecom’s assets in Pakistan and Bangladesh, Abdel Naeem added.

He also stressed that the benchmark EGX30 index moved upwardly over the past trading sessions, backed by the heavyweight Commercial International Bank (CIB) that hit EGP 86 and targets EGP 92 and EGP 94.

Settling above 16,000 points will pave the way for the EGX30 index to test 16,300 and 16,550 points, customer relations manager at Arabeya Online Michael Mamdouh told Mubasher.

The index is still moving downwardly in the medium-term, however, it is likely to be stable above 16,000 points in the short-term, Mamdouh indicated.

He highlighted that the EGX30 index has main support at 15,640 and 15,071 points, pointing out that by breaking this level, it would be a stop-loss point for short-term investors.

The index has resistance at 16,040 and 16,450 points, he said, noting that the index may test 16,300 and 16,550 points if it breaks 16,000 points.

Translated by: Mai Ezz El-Din