Capital market experts and technical analysts expected the Egyptian Exchange (EGX) to continue its sideways movement on Thursday ahead of Eidul Adha.
The stock market will close as of Sunday till Tuesday on celebrating Eid. It will reopen on Wednesday, October 8.
Mona Moustafa, technical analyst, African Economic Group, said indices are expected to show mixed performance, adding that the benchmark index continued its slight profit taking. The analyst advised medium and long term traders to reduce their positions and short term traders to buy in dips.
The benchmark index continued its sideways movement between 9500 and 9800 and failed to shot above the historic resistance level due to weak liquidity, said Safwat Abdel Naeem, capital market expert.
Although leading stocks controlled huge portion of the market’s liquidity, they failed to help the benchmark shoot above 9800 level, said the analyst, adding that the index were pressured by local and foreign institutional sell-offs.
The analyst expected the index to continue moving sideways between 9800 and 9500 on Thursday. He also forecasted turnover to remain at weak level of around EGP 500 million.
EGX indices ended Wednesday’s session on a mixed note, amid strong buying by national and Arab traders.
The benchmark index EGX30 fell 0.67% or 65.91 points to close below the 9750 level at 9745.49 points.
EGX70, which measures small and mid-cap stocks, rose 0.44% to 640.12 points. The broader index EGX100 rose 0.19% to 1170.17 points.