Cairo – Mubasher: The Egyptian Exchange (EGX) is likely to maintain the bearish trend on Monday, analysts told Mubasher.
The benchmark EGX30 index is expected to test main support at 14,468 and 14,400 points, head of capital market committee at the African Economic Council Ayman Fouda said, adding that it has resistance at 15,070 and 15,300 points.
As for the small- and mid-cap EGX70 index, the analyst said it has a short-term resistance at 740 and 755 points, while it is likely to test support at 730 and 720 points.
On Saturday, 16 September, the Cairo Criminal Court has ordered the arrest of ousted Egyptian President Hosni Mubarak’s two sons for violating the rules of the EGX and the Central Bank of Egypt (CBE) to make unlawful profits through dealing in shares of Al Watany Bank of Egypt (AWB).
Market capitalisation of the EGX fell on Sunday to its lowest level since 31 December 2017 as nearly 135 stocks dropped.
Moreover, trading head at Arabia Online Mona Mostafa said that many foreign traders stopped trading on Sunday amid rising concerns over stocks, particularly the emerging markets expected to carry on the downward trend amid economic tensions and the volatile performance of surrounding countries’ stock markets.
The Egyptian stock market may continue the negative performance if blue-chip stocks do not settle above current support levels, Mostafa remarked.
Foreign sell-off weighed on around 13 blue-chip stocks on Sunday.
Alaa and Gamal Mubarak, as well as other seven other men accused of stock market manipulation, have denied any wrongdoing, Reuters reported.
The current and former board members Yasser El Mallawany and Hassan Heikal, respectively, at Egyptian investment bank EFG Hermes were also detained, the London-based news agency said, citing a judicial source.
The leading investment bank said on Sunday it is not a part of the manipulation case and all the company’s activities and business will carry on as usual in light of the current management, according to a bourse filing.
In the same vein, Amr El-Kady, head of risk management and investor relations at Qalaa Holdings has been also detained for holding qualifying shares as a board member in AWB, Qalaa revealed in a filing to the Egyptian bourse.
Qalaa stressed it has never traded on AWB’s shares and it has not been a shareholder or a board member of it, adding that its business is stable as it is not a part of the case.
