Analysts expect EGX profit-taking to continue

Cairo – Mubasher: A wave of profit-taking is likely to continue on the Egyptian Exchange (EGX) on Thursday, coinciding with some negative news reports, analysts have said.

It is expected that profit-taking will continue in the last session of the week; however, should purchasing momentum continue, the EGX will rise and see a sideways performance as investors recollect stocks after profit-taking, commented Ayman Fouda, head of the Capital Markets Committee at the African Economic Council.

He added that the benchmark EGX30 will see resistance at 13,544 and 13,650 in extension, while support will be seen at 13,235 and 13,104 points.

Meanwhile, Hoda El-Menshawy from EGS Brokers noted that the EGX30 index suffered a “sharp and unjustified” drop” on Wednesday following pressure from selling by Egyptian and Arab institutions amid rumours of negative news.

Local media reported that there were plots for terrorist attacks on 25 January, added to confiscating money from Juhayna’s chairman and managing director Safwan Thabet.

Juhayna Food Industries announced on Wednesday that putting its chairman on the terrorist list was for Safwan’s person and was not related to any of the companies he was managing.

On Wednesday, Capital Economics noted that the most populous Arab country’s economic growth is expected to reach 1% in 2016, compared to consensus of 3.5-4%.

The EGX will see a rising trend in the short, medium and long terms with the benchmark index moving in a price channel ranging between 10,265 points and 14,200 points, Menshawy added.

The EGX reversed its morning gains on Wednesday and closed in the red, falling 0.98% or 131.66 points to 13,304.444 points.

MUBASHER Contribution Time: 19-Jan-2017 08:18 (GMT)
MUBASHER Last Update Time: 19-Jan-2017 09:03 (GMT)