EGX Awaits Short-Term Profit-Taking Deals: Experts

A number of capital market experts forecasted that the Egyptian Exchange (EGX) indices will witness a short-term profit-taking transactions due to the series of upwards and profits achieved since President Mohamed Morsi has assumed office.

Experts said witnessing profit-taking deals within the coming days is quite normal as the investors would be willingly benefit from the recent gains. The Egyptian Exchange (EGX) had a series of losses as a reverse impact of the revolution, experts added.

The experts had also expected that the indices will push up on the medium and long term backed by the political stability and economic motivators particularly the International Monetary Fund (IMF) loan.

Mohamed Saeed – Portfolio Manager at IDT Consulting & Systems, said the market had witnessed remarkable upwards during the last days; the benchmark EGX30 had managed to rise from 3645 pts to eventually reach on Wednesday’s closing session the level of 5725 pts.

Saeed expects that the market will witness a short-term slowdown due to the anticipated profit-taking transactions.

“Yet, on the medium and long-run, the market is going to push upwards.” Saeed added

Mostafa Adel, Technical Analysis Manager at Horizon brokerage Co., asserted that After naming a new president for the state and witnessing political stability optimism, the Egyptian market had positive performance and gradual improvement in the value and volume of trades in the EGX.

Adel expects that the benchmark EGX30 is seen next target standing at the level of 5800 pts on the short-term.

The positive economic indicators such as the IMF loan as well as economic agreements signed with a number of countries will likely curb witnessing severe profit-taking deals, he said.

Mohamed Anwar – analyst at Wedian Securities Stock Brokerage & Bookkeeping – added that the EGX30 is targeting nowadays the 5700 levels backed by economic and political stability.