Egyptian bourse correction movement likely to end this week

Egyptian bourse is expected to end its correction during the last week of May on new market-boosting catalysts, analysts told Mubasher.

The Egyptian Exchange (EGX) has maintained its correction at the end of last week amid lower trading volume, analyst Michael Mamdouh Naguib commented, noting that the benchmark EGX30 index could carry on with the correction and target 16,500 points if it tests 16,900 points.

The index has support at 16,570 points, followed by 16,500 and 16,445 points, he indicated, adding the index will see resistance at 16,900 and 17,000 points.

Naguib recommended that investors to trade on stocks when the index is near 16,500 points, particularly the housing sector’s stocks, keeping that level as a stop-loss standstill.

For his part, head of capital market committee at the African Economic Council Ayman Fouda said that the EGX’s correction may end on Sunday on the back of new catalysts.

The EGX30 has a short-term resistance at 16,750 and 16,900 points, and has support at 16,600 and 16,525, Fouda remarked.

Meanwhile, the small- and mid-cap index EGX70 has a short-term resistance at 862 and 870 points, and support at 850 and 840 points, he added.

Fouda advised traders to observe stocks carefully and get ready to create new purchases near support levels in operative stocks, whose results have been positive.