EGX expects calm trades Sunday ahead of Eid Al-Adha holiday
Analysts forecast that the Egyptian Exchange (EGX) would see calm trading on Sunday ahead of the Eid Al-Adha holiday.
The EGX will suspend trades from Monday, 20 August until Wednesday, 22 August for the Eid holiday, with trading to resume on Thursday, 23 August. Banks will also be closed for the three-day vacation.
The outlook for the EGX remains negative as investors await new market-boosting incentives that should make stocks active again, restore liquidity to the market and commence a new rising trend, commented Ayman Fouda, head of capital market committee at the African Economic Council.
He added that the benchmark EGX30 index will continue to see resistance at 15,303 then 15,400 points, while support is currently seen at 15,090 and a break below this level will take the index to support at 14,700 points.
As for the small and medium sized enterprises EGX70 index, the analyst forecast short-term resistance at 744 then 750, while support is to be seen at 736 then 720 points.
Fouda advised investors to keep a close eye on stocks and not to start any buying positions until the sideways trend stabilises and the market sees stronger turnover.
Meanwhile, Michael Aramia, head of technical analysis at Arabeya Online Brokerage, noted that the EGX was moving in a long-term rising trend, but on the short and medium-terms the trend was a declining one.