CAIRO: The Egyptian Exchange (EGX) is seen as bullish and analysts say it may target 10,200 points next week, despite militant attacks in North Sinai Thursday evening, which killed at least 29 soldiers and civilians.
Last week, the market also went up, shrugging off deadly clashes between Muslim Brotherhood supporters and security forces during the 4th anniversary of the January 25 Revolution.
“EGX traders, like the majority of Egyptians, neglected such violent acts, but for a slight decline on Monday’s session,” Osool Securities Brokerage technical analysis head Ehab Saeed told The Cairo Post.
“The EGX30 managed to continue its upward move and approached more than a six-year high at 9,978 points, the highest level since June, 2008,” said Saeed.
Saeed added that the EGX30 has approached its target near 10,000 points, pushed by blue chips’ positive performance topped by the heavyweight CIB.
CIB, the market bellwether, was able to breach above its target at 55 EGP, registering its all-time high at 56.33 EGP. But, the stock witnessed minimal profit taking and shut Thursday near 51.19 EGP, the analyst detailed.
Reiterating his positive outlook for the market, the analyst said; “The benchmark will focus on its next resistance of 10,200 points. Breaching this level will push the index toward 10,600, if it sustains above its new support near 9,600 points.”
Saeed predicted the EGX70 will focus on its resistance near 582 points, noting that penetrating this level may help the index extend its rally toward (595-600) points.
The government is preparing for two important events in March: an international economic summit is scheduled for March 13-15, and the parliamentary elections, the final step in the 2013 political roadmap, will begin March 21.
The Central Bank of Egypt’s “positive” decision to keep depreciating the value of the local currency with the aim of reducing the price gap between the official market and black market ahead of the economic summit undermined the negative impact of the deadly clashes and attacks took place this week, added the analyst.