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Egyptian Exchange at the mercy of Brexit repercussions Technical analysts predict the market falling from 7,253.3 points to 6,800 points over Sunday and Monday
Technical analysts predicted that investors of the Egyptian Exchange (EGX) would face a tough test during Sunday's session, affected by the secession of the United Kingdom from the European Union. Analysts suggested that the market would move between 6,800 and 6,900 points throughout the first two sessions of the week. Trading closed last week at 7,253.3 points. But analysts disagreed about the EGX's performance throughout the rest of the week. Some believe it is likely to continue south to as low as 6,600 and 6,750 points. Others said it will bounce up and climb to 7,400 points before the end of the week. Head of the technical analysis department at Naeem Brokerage, Ibrahim El-Nemr, said that Sunday will see a wave of selling that may push EGX30 to decline to 6,900-7,000 points, amid an exceptionally limited high volume of trading, unlike usual Sundays. He predicted foreign institutions to lead the sales movement, driven by their desire to obtain liquidity and balance with their financial portfolios abroad. El-Nemr said that this fall may continue throughout the week and close at 6,600-6,750 points, compared to 7,253.3 points last week. He also stated that CIB shares are approaching EGP 40, with the increasing possibility to decline during the trading week to EGP 37-38. El-Nemr expected Global Telecom shares to fall to EGP 2.90 and OTMT to 0.53 piaster in case of loss of 10% of their balance in Sunday's session. Mohamed Al-Assar, head of the technical analysis department at the National Bank of Kuwait (NBK) for Investment in North Africa and the Middle East, said that the stock market will face fierce downs during the first two sessions of the week to 6,800 points. Al-Assar said it is likely that the market will rebound again and rectify its status to target 7,400 points by the end of this week. Consequently, Al-Assar advised dealers to launch purchasing stations during the two sessions of Sunday and Thursday, to take advantage of the ups expected in the remaining sessions of the week. In terms of weekly stock performance, Al-Assar expected CIB shares to fall to EGP 38.5, and then rise to EGP 42.25. He also expected EFG-Hermes to fall to EGP 10.10 pounds, and then rise to EGP 11.5. Emaar is to fall to EGP 2.15 before rising to 2.67 pounds.
