Egyptian bourse likely to rise Tuesday: analysis

Egyptian bourse (EGX) is expected to resume the positive performance on Tuesday amid new purchasing positions.

The main indices of the Egyptian Exchange (EGX) are projected to resume testing near resistance levels following the correction trend and sell-offs the market has witnessed on Monday, head of capital market committee at the African Economic Council Ayman Fouda said.

The benchmark EGX30 index is likely to move in an upward direction in the long-term, see a sideways trend in the medium-term, and move downwardly in the short-term, Fouda highlighted

The index has a short-term resistance at 17,000 and 17,300 points, while it has support at 16,850 and 16,600 points, he added.

Moreover, the small- and mid-cap EGX70 index could see a short-term downward trend as it has resistance at 855 and 860 points and support at 840 and 836 points, he noted.

Fouda recommended investors not to sell randomly and to carefully monitor stocks to collect earnings of each stock separately in order to create new purchasing positions.

He advised quick traders to trade on active stocks, in line with buying on margin.