It is expected that the Egyptian Exchange (EGX) will see a slight rebound during Thursday’s trading session as several stocks erase their losses, analysts have said.
The benchmark EGX30 index is likely to see short-term resistance at 12,600 then 12,770, head of capital market committee at the African Economic Council Ayman Fouda said, noting that if the index remains stable above these levels would enable the index to retest the levels of 12,951.
The index will see support at 12,525 and 12,430 points, the analyst added.
The EGX30 retreated to its lowest level since May 2017 during Wednesday’s mid-trades.
As for the small and medium-sized stocks index, the EGX 70, Fouda expects it to see resistance at 669 and 677 points, whereas support will be at 658 and 650 points.
The EGX closed Wednesday in the red amid strong foreign and Arab investors’ selling, with the EGX30 slipping 0.30% to close at 12,586.74 points.
Meanwhile, head of technical analysis at Arab Finance Osama Naguib noted that the EGX30 has reached new support between 12,500 and 12,600, forecasting that this would prompt the index to regain 12,900 and 13,000 points, an area which Naguib described as an incentive for new sales and price pressures.
Over the past two weeks, the EGX has suffered sharp declines pressured by banking stocks, particularly CIB, which had retreated by 13% over the two-week period. CIB’s fall came on the back of tax amendments to returns from bonds and treasury bills, however, the bank said Wednesday that these amendments would not impact its results for 2018 as they will not be imposed retroactively.