The Egyptian Exchange (EGX) is expected to continue the downward trend until Qalaa Holdings’ stock rise again, after recording its lowest level of liquidity in 10 years on Sunday’s trading session, analysts told Mubasher.
The EGX is likely to carry on the bearish trend on Monday, market expert Issmat Yassin said.
The benchmark EGX30 index may target 16,000 and 16,100 points if it breaks sub-resistance at 15,900 points, Yassin highlighted, adding that the index has support at 15,780 points.
Meanwhile, the small- and mid-cap EGX70 index could retest resistance at 775 and 785 points, while it has support at 760 and 755 points, she indicated.
For his part, customer relations manager at Arabeya Online Michael Mamdouh Naguib said that the EGX anticipates trading on Qalaa Holdings’ stock after it hit its lowest in 10 years yesterday.
Thin liquidity in the local market was mainly driven by foreign investors’ concerns over the Financial Regulatory Authority’s (FRA) decisions regarding setting the stock’s fair value (FV) at EGP 7.5, Naguib noted.
He stressed that the EGX will move upwardly if Qalaa’s stock advances, but it will carry on the bearish trend if the stock extends losses over the coming sessions.
The EGX30 index has a short-term support at 15,781 and 15,500 points and has resistance at 16,100 points.