C.bank’s rate decision to weigh on EGX Thursday

Egyptian Exchange (EGX) is likely to maintain the bearish trend on Thursday amid investor anticipation of the Central Bank of Egypt’s (CBE) Monetary Policy Committee (MPC) interest rate decision, analysts told Mubasher.

The MPC is expected to keep interest rates unchanged during their meeting today amid weak hike expectations, according to a poll done by Mubasher.

The EGX may continue the sideways-to-declining trend until sellers maintain protecting their short-term gains, head of capital market committee at the African Economic Council Ayman Fouda said.

Purchasing power is likely to resume gradually in the local market and push stocks and indices higher, Fouda added.

The benchmark EGX 30 index has a short-term resistance at 13,525 and 13,775 points, while it has support at 13,330 and 13,260 points, he highlighted.

As for the small- and mid-cap EGX 70 index, he noted that it has a short-term resistance at 705 and 712 points, while it has support at 690 and 682 points.

For his part, Osama Naguib, head of technical analysis at Arab Finance Securities, said that the EGX30 index is hovering around 13,400 points.

Naguib pointed out that higher trading volume amid the downward trend of the EGX is a negative sign in the meantime that could lead to further declines.

The EGX 30 has support at 13,400 and 13,150 points, he indicated, adding that sell-offs still weigh on the market as long as the index is below 14,800 points.