EGX To Push Upwards This Week, Benchmark To Target 6000 Pts: Experts

A number of capital market experts forecasted Saturday that the Egyptian Exchange (EGX)’s benchmark is seen next target standing at the level of 6000 pts within the current week backed by positive news about the leading stocks alongside financial direct foreign investment agreements signed by the Egyptian President Mohamed Morsi during his foreign trips.

Karim Abdel Hady – Technical analyst at Golden Way Securities – said the EGX30 stands at the resistence level of 6000 pts. The 5630 pts level represents a strong support for the main index, Abdel Hady added.

“The market is pushing upwards due to the political and economic stability.”

Abdel Hady had also expected that the EGX30 will push up within this week targeting 6000 pts. “This is due to the fact that the EGX had already witnessed profit-taking transactions during the last session of the week before.”

He added that all the economic indicators reveal that foreign countries which plan to finance a number of project in Egypt trust in the Egyptian economy.

Such foreign finance shall support the country’s foreign reserve which means more stability, growth and securities market activities, he noted.

Abdel Hady also asserted that EGX30’s performance is much better than of EGX70.

In meanwhile, Nady Azzam – Technical Analyst at Horeya Securities – asserted that the market is moving upwards within this week and the main index will target the level of 6200 pts backed by the leading stocks’ news.

“This week, the EGX will witness extensive buying transactions from the Arab investors.” Azzam added.