Egypt’s EGX to hover around 13,400 points Wednesday

The Egyptian Exchange (EGX) is likely to maintain the bearish trend on Wednesday after breaking 13,800 points and hovering around 13,500 and 13,400 points, analysts told Mubasher.

The benchmark EGX 30 index may retest 13,500 points after closing Tuesday’s trading session near 13,800 points, customer relations manager at Arabeya Online Michael Mamdouh Naguib said.

The index is likely to carry on the downward trend and break 13,500 points to see main support at 13,160 points, Naguib projected.

He stressed that the upward trend recently seen by the local market was just a correction, adding that the EGX may maintain the negative performance in the medium-term.

The EGX 30 could target 14,000 and 14,100 points if it breaks 13,800 points, Naguib indicated.

For his part, Osama Naguib, head of technical analysis at Arab Finance Securities, said that the EGX 30 hovers around 13,400 points and is likely to move downwardly.

He noted that higher trading volume amid the bearish 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, Naguib highlighted, pointing out that sell-offs still weigh on the market as long as the index is below 14,800 points.