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Technical analysts recommend buying as shares fall during opening sessions of week's trading The market is expected to benefit from a support level of 10,900 points and targets 11,550 points
Technical analysts recommended that investors not drift towards selling their shares amid the decline in prices, especially during the first sessions of the week. The analysts added that it will constitute a good opportunity to buy as the Egyptian Exchange (EGX) is likely to rapidly move from falling to climbing. Analysts predicted the EGX30 may attempt to benefit from the support level at 10,900-11,000 points, which could push the index up to 11,550 points this week. EGX30 climbed to 11,353 last week, recording a growth rate of 1.17%. EGX70 also rose by 4.55% to 448 points. The director of the technical analysis division of Osool Securities Brokerage, Ehab Saeed, said that the market recorded its highest level since May 2008 at 11,687 points last week, but failed to maintain this achievement, closing at 11,353 points. He pointed out that trading volumes have fallen during the past week to an average of EGP 1.7bn per session, compared to EGP 2bn in the past two weeks, as a result of foreigners' purchases declining. Saeed predicted that EGX30 will focus on benefiting from the 11,000-10,900 point level, which could halt the market's decline. He added that staying above 10,600 points pushes it up again to 11,000 points. Regarding the performance of stock shares, Saeed said that the shares of the Commercial International Bank (CIB) may test the resistance level of EGP 65 after it retreated down to EGP 67.27 from its highest ever level at EGP 70.5. It is expected that Hermes' shares may also benefit from the resistance level of EGP 19.5, having closed on Thursday at EGP 20.27, while Talaat Moustafa Group Holding Company (TMGH) targets moving above EGP 8.4-8.5. Head of the technical analysis department at the National Bank of Kuwait for investment in North Africa and the Middle East, Mohamed Al-Aasar, said the EGX is nominated to move between 10,900-11,550 points this week amid a wave of profit-taking led by blue chip stocks since the beginning of November. He recommended that traders not sell amid the decline, but rather seize the opportunity to buy as it is likely to move up again. He nominated a number of shares to record a good performance this week, including Ezz Steel shares, which aims to move in the area of EGP 11-12.5; Sodic between EGP 15-17; Emaar Misr for Development between EGP 2.8-3.2; and Global Telecom Holding around EGP 6.45-8.85.
