EGX 30 Likely To Target 5500 Pts, Downturn Inevitable On Recent Unrests: Experts

The Egyptian market is likely to go through an inevitable downturn driven by the political developments the country witnesses nowadays, said capital market experts.

The experts expected the EGX benchmark’s fall likely to exceed 5% through Sunday’s session. Yet, they ruled out the possibilities of witnessing a market collapse noting that the investors have been in full alert since a week earlier ahead of the second –year anniversary of January uprising.

Hence, the investors’ readiness for any potential incidents would lessen the dramatic impact of the current events on the market for this week.

Ghada Tolba, technical analyst at Luxor Securities Brokerage, said the court’s today ruling on the Port Said football massacre case was supposed to result in positive impact on the market. However, the clashes erupted between the police officers and defendants’ families alongside the escalating violence in Port Said will likely lead to the EGX’s decline.

Tolba added that the EGX30 is targeting the support level of 5500 pts within the current week. Sunday’s session will witness halting trading on the main index amid the 5% decline, she expected.

She said in case of witnessing further political deterioration and continuous clashes between the police and the mass, the EGX30 will probably penetrate the resistant level of 5500 pts falling to the level of 5460 pts. The main index would not further penetrate the level of 5460 pts unless a new uprising staged in the country.