CAIRO: The Egyptian Exchange (EGX) is likely to show negative performance Monday amid concerns of escalated clashes and violence between Muslim Brotherhood supporters and security forces following the fourth anniversary of the January 25 Revolution.
Analysts have also predicted that the market may be affected by possible slips in the Gulf Market following the death of Saudi Arabia’s late King Abdullah bin Abdulaziz al-Saud.
Egypt’s market showed a mixed performance last week and market capitalization added around 8.3 billion EGP ($1.13 billion) pushed by the Egyptian pound slip against the U.S dollar.
The benchmark index EGX30 hiked 3.59 percent, closing the week at 9,898 points, the highest level since 2008 and compared to 8,556 points a week earlier. In turn, the small and mid-cap index EGX70 lost 1.24 percent to 569.9 points, down from 577 points in the previous week.
The Egyptian pound hit its official lowest level after the Central Bank of Egypt (CBE) let it depreciate to 7.39 per U.S. dollar at a regular Thursday auction, compared to 7.34 a day earlier.
“The benchmark is expected to ride a downward wave to re-test the level of 9,580 points at least, Adham Gamal Eldin, head of the technical analysis desk at Cairo Capital Securities told The Cairo Post.
Gamal added that the EGX70 is likely to slip toward its support level of 555 points.
Last week the EGX30 managed to breach above its resistance level of between 9,800-9,830 points and tried to advance toward its secondary resistance level of 10,000 points during Thursday’s session, but ultimately failed.
According to the analyst, the market faces the level of 9,800-9,830 points as a first support, then 9,580 points, while the level of 10,000 points acts a resistance level followed by 10,500 points.