ICEC

Egyptian exchange to be volatile this week on global markets

The Egyptian Exchange (EGX) has lost over 850 points last week, dragged down by the global markets plunge.

The bearish trend controlling the Arab and global markets has weighed on the EGX last week despite the leap in the yields on the US treasury bonds, customer relations manager at Arabeya Online Michael Mamdouh Naguib said.

The downward trend is still dominating the Egyptian bourse as there is no signal when the correction phase will end since the benchmark EGX30 index has broken more than a main support level the week before, Naguib indicated.

He pointed out that the index is likely to test support at 12,000 points if it could not break resistance at 13,400 points.

For his part, branch manager of Osool ESB Securities Brokerage Saeed El Feki said that the EGX30 index broke support at 13,600 points due to selling pressures and investors’ fear of the bourse’s consecutive declines.

EL Feki projected the index to rebound at 13,000 points and hover around 14,000 points, pointing out that the prices of stocks have become attractive on the short-term.

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